Intuit Bookkeeping Professional Certificate Final Exam With A+ Graded solutions(2026/2027)

Intuit Bookkeeping Professional Certificate Final
Exam With A+ Graded solutions(2026/2027)
1. The "Accounting Equation" is the foundation of bookkeeping. What is the correct formula?

 A) Assets + Liabilities = Equity

 B) Assets = Liabilities + Equity

 C) Assets + Equity = Liabilities

 D) Revenue - Expenses = Assets
CORRECT ANSWER: B) Assets = Liabilities + Equity

2. Which financial statement shows a "snapshot" of a company's financial position at a specific
point in time?

 A) Profit and Loss Statement

 B) Statement of Cash Flows

 C) Balance Sheet

 D) Trial Balance
CORRECT ANSWER: C) Balance Sheet

3. Under the "Accrual Basis" of accounting, when is revenue recognized?

 A) When the cash is physically received

 B) When the service is performed or the product is delivered

 C) At the end of the fiscal year

 D) When the invoice is printed but not yet sent
CORRECT ANSWER: B) When the service is performed or the product is delivered

4. A "Debit" entry will increase the balance of which account type?

 A) Liabilities

 B) Revenue

 C) Assets

 D) Equity
CORRECT ANSWER: C) Assets

5. In QuickBooks Online, which feature allows you to categorize transactions automatically
based on specific criteria?

 A) Reconcile

 B) Bank Rules

 C) Chart of Accounts

, D) Journal Entries
CORRECT ANSWER: B) Bank Rules

6. Which account is considered a "Contra-Asset" account?

 A) Accounts Receivable

 B) Accumulated Depreciation

 C) Prepaid Rent

 D) Unearned Revenue
CORRECT ANSWER: B) Accumulated Depreciation

7. When a company purchases office supplies on credit, which accounts are affected?

 A) Debit Supplies; Credit Cash

 B) Debit Supplies; Credit Accounts Payable

 C) Debit Accounts Payable; Credit Supplies

 D) Debit Cash; Credit Supplies
CORRECT ANSWER: B) Debit Supplies; Credit Accounts Payable

8. What is the primary purpose of a "Bank Reconciliation"?

 A) To calculate the net profit for the month

 B) To ensure the books match the bank statement and identify discrepancies

 C) To pay the bank fees

 D) To close the books for the year
CORRECT ANSWER: B) To ensure the books match the bank statement and identify
discrepancies

9. Which of the following is a "Liability" account?

 A) Inventory

 B) Sales Tax Payable

 C) Common Stock

 D) Retained Earnings
CORRECT ANSWER: B) Sales Tax Payable

10. The "Double-Entry" system requires that for every transaction:

 A) Only one account is changed

 B) Total debits must equal total credits

 C) Cash must be involved

 D) Equity must increase
CORRECT ANSWER: B) Total debits must equal total credits

, 11. Which document is used to record a reduction in the amount a customer owes due to a
return or overcharge?

 A) Credit Memo

 B) Sales Receipt

 C) Purchase Order

 D) Bill
CORRECT ANSWER: A) Credit Memo

12. "Cost of Goods Sold" (COGS) is categorized as:

 A) An Asset

 B) A Liability

 C) An Expense

 D) Revenue
CORRECT ANSWER: C) An Expense

13. Which report summarizes the income and expenses of a business over a specific period?

 A) Balance Sheet

 B) Profit and Loss (Income Statement)

 C) Accounts Payable Aging

 D) Inventory Valuation Summary
CORRECT ANSWER: B) Profit and Loss (Income Statement)

14. What does "Equity" represent in a business?

 A) Total cash in the bank

 B) Total debt owed to creditors

 C) The owner's residual interest in the assets after deducting liabilities

 D) Total annual sales
CORRECT ANSWER: C) The owner's residual interest in the assets after deducting liabilities

15. An "Adjusting Journal Entry" is typically made:

 A) Every time a sale occurs

 B) To record internal transactions like depreciation or accrued expenses at month-end

 C) To delete a mistake

 D) Only when the bank asks for it
CORRECT ANSWER: B) To record internal transactions like depreciation or accrued expenses
at month-end

16. What is the term for the list of all accounts used by a business to categorize transactions?