INTUIT BOOKKEEPING EXAM 2026-2027
QUESTIONS AND CORRECT ANSWERS
GRADED A+
A financial statement that reports a company's assets, liabilities, and equity at a
specific point in time
The Balance Sheet
Reports the changes in company equity, from the opening balance to the end of the
period balance.
The Statement of Equity
Reports the sources and uses of cash by a business
The Statement of Cash Flow
Accounting Cycle
1. Analyze and record transactions
2. Post transactions to ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusted entries at the end of the period
,5. Prepare adjusted trial balance
6. Prepare financial statements
If customers pays at the time of sale you must enter it as a
Sales Receipt
If customers does not pay at the time of sale you must enter it as a
Invoice
Once and customer has paid an invoice it goes to
Receive payment
Receive payment and sales receipt are followed by
Bank deposit
Step 4 of The Accounting Cycle: Preparing adjusted entries includes
Deferrals, Accruals, Missing Transactions, and Tax Adjustments
Removing transactions that belong to a different period
, Deferral
Opposite of deferral. Concern future payments or expenses
Accruals
The Business is a separate entity, so the activities of a business must be kept
separate from any other financial activities of its business owners
Economic Entity Assumption
Only transactions that can be proven should be recorded in accounting practices.
And what this means is that businesses must be able to prove transactions through
such things as receipts, billing statements, invoices, and bank statements.
Reliability Assumption
All info that is relative to the business and is important to a lender or investor has
to be disclosed in financial statements or in the notes of the statements
Full Disclosure Principle
When choosing between two solutions, the one that will be least likely to overstate
assets and income should be selected.
Conservatism Assumption
QUESTIONS AND CORRECT ANSWERS
GRADED A+
A financial statement that reports a company's assets, liabilities, and equity at a
specific point in time
The Balance Sheet
Reports the changes in company equity, from the opening balance to the end of the
period balance.
The Statement of Equity
Reports the sources and uses of cash by a business
The Statement of Cash Flow
Accounting Cycle
1. Analyze and record transactions
2. Post transactions to ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusted entries at the end of the period
,5. Prepare adjusted trial balance
6. Prepare financial statements
If customers pays at the time of sale you must enter it as a
Sales Receipt
If customers does not pay at the time of sale you must enter it as a
Invoice
Once and customer has paid an invoice it goes to
Receive payment
Receive payment and sales receipt are followed by
Bank deposit
Step 4 of The Accounting Cycle: Preparing adjusted entries includes
Deferrals, Accruals, Missing Transactions, and Tax Adjustments
Removing transactions that belong to a different period
, Deferral
Opposite of deferral. Concern future payments or expenses
Accruals
The Business is a separate entity, so the activities of a business must be kept
separate from any other financial activities of its business owners
Economic Entity Assumption
Only transactions that can be proven should be recorded in accounting practices.
And what this means is that businesses must be able to prove transactions through
such things as receipts, billing statements, invoices, and bank statements.
Reliability Assumption
All info that is relative to the business and is important to a lender or investor has
to be disclosed in financial statements or in the notes of the statements
Full Disclosure Principle
When choosing between two solutions, the one that will be least likely to overstate
assets and income should be selected.
Conservatism Assumption
