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INTUIT BOOKKEEPING EXAM 2026
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
A measure of a company's profitability. Shows the percentage of
revenue that exceeds COGS - correct answer -Gross Profit
Margin
Gross profit margin formula - correct answer -(Sales Revenue -
Cost of Goods Sold) / Sales Revenue
Measures how much profit a company makes on a dollar after
paying for employees and overhead - correct answer -Operating
Margin
Operating Profit Margin - correct answer -operating
earnings/sales revenue
Used to calculate the percentage of profit a company produces
from it total revenue - correct answer -Net Profit Margin
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Net Profit Margin Formula - correct answer -Net profit/sales
revenue
Analyzes short term financial risk - correct answer -Current Ratio
Current Ratio Formula - correct answer -Current Ratio = Current
Assets / Current Liabilities
Compares total debt to total equity - correct answer -Debt to
Equity Ratio
Debt to Equity Ratio Formula - correct answer -Total Debt /
Shareholder's Equity
Accounts Payable Turnover - correct answer -Net Credit
Purchases/Average Accounts Payable
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Accounts Receivable Turnover Ratio - correct answer -net credit
sales/average net accounts receivable
Cash Flow Coverage Ratio - correct answer -Cash Flow
Operations/ Total Debt
Current Liability Coverage Ratio - correct answer -Net Cash from
Operating Activities/ Average Current Liabilities
Cash Flow Margin Ratio - correct answer -cash flow from
operations/net sales
Key performance indicators (KPIs) - correct answer -Quantifiable
measures of performance used to gauge progress toward
strategic objectives or agreed standards of performance.
8 Step Payroll Process - correct answer -1. Choose payroll
system
2. Create Payroll Policy
INTUIT BOOKKEEPING EXAM 2026
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
A measure of a company's profitability. Shows the percentage of
revenue that exceeds COGS - correct answer -Gross Profit
Margin
Gross profit margin formula - correct answer -(Sales Revenue -
Cost of Goods Sold) / Sales Revenue
Measures how much profit a company makes on a dollar after
paying for employees and overhead - correct answer -Operating
Margin
Operating Profit Margin - correct answer -operating
earnings/sales revenue
Used to calculate the percentage of profit a company produces
from it total revenue - correct answer -Net Profit Margin
, Page | 2
Net Profit Margin Formula - correct answer -Net profit/sales
revenue
Analyzes short term financial risk - correct answer -Current Ratio
Current Ratio Formula - correct answer -Current Ratio = Current
Assets / Current Liabilities
Compares total debt to total equity - correct answer -Debt to
Equity Ratio
Debt to Equity Ratio Formula - correct answer -Total Debt /
Shareholder's Equity
Accounts Payable Turnover - correct answer -Net Credit
Purchases/Average Accounts Payable
, Page | 3
Accounts Receivable Turnover Ratio - correct answer -net credit
sales/average net accounts receivable
Cash Flow Coverage Ratio - correct answer -Cash Flow
Operations/ Total Debt
Current Liability Coverage Ratio - correct answer -Net Cash from
Operating Activities/ Average Current Liabilities
Cash Flow Margin Ratio - correct answer -cash flow from
operations/net sales
Key performance indicators (KPIs) - correct answer -Quantifiable
measures of performance used to gauge progress toward
strategic objectives or agreed standards of performance.
8 Step Payroll Process - correct answer -1. Choose payroll
system
2. Create Payroll Policy
