Intuit Certified Bookkeeping Professional Final Exam With Correct Verified Answers 2026/2027 Version.

Intuit Certified Bookkeeping Professional Final Exam
With Correct Verified Answers 2026/2027 Version.
1. When a business pays for a 2-year insurance policy in advance, the transaction should be
recorded as a debit to:

 A) Insurance Expense

 B) Prepaid Insurance (Asset)

 C) Accounts Payable

 D) Owner's Equity
CORRECT ANSWER: B) Prepaid Insurance (Asset)

2. Which QuickBooks Online report identifies transactions that have been entered but not yet
cleared in the bank reconciliation?

 A) Profit and Loss

 B) Reconciliation Discrepancy Report

 C) Balance Sheet

 D) General Ledger
CORRECT ANSWER: B) Reconciliation Discrepancy Report

3. The "Objectivity Principle" in accounting requires that:

 A) Financial statements be based on personal opinion

 B) Financial data be supported by verifiable evidence (receipts, invoices)

 C) All assets be recorded at their current market value

 D) Only large transactions be recorded
CORRECT ANSWER: B) Financial data be supported by verifiable evidence (receipts,
invoices)

4. Which of the following is a "Non-Current Liability"?

 A) Wages Payable

 B) Accounts Payable

 C) Mortgage Note Payable (due in 15 years)

 D) Unearned Revenue
CORRECT ANSWER: C) Mortgage Note Payable (due in 15 years)

5. What is the effect of a "Credit" entry to the Accounts Receivable account?

 A) It increases the amount customers owe

 B) It decreases the amount customers owe (usually due to a payment)

 C) It increases the company's cash

, D) It increases sales revenue
CORRECT ANSWER: B) It decreases the amount customers owe (usually due to a payment)

6. In QuickBooks Online, "Bank Rules" are primarily used to:

 A) Prevent users from making mistakes

 B) Automatically categorize and suggest actions for bank feed transactions

 C) Reconcile the account at the end of the month

 D) Calculate interest earned
CORRECT ANSWER: B) Automatically categorize and suggest actions for bank feed
transactions

7. A "Statement of Shareholder's Equity" tracks:

 A) Daily cash sales

 B) Changes in the owner's investment and retained earnings over time

 C) All money owed to vendors

 D) The value of the company's inventory
CORRECT ANSWER: B) Changes in the owner's investment and retained earnings over time

8. Which form is used by an independent contractor to provide their taxpayer identification
number to a business?

 A) W-2

 B) W-4

 C) W-9

 D) 1099-NEC
CORRECT ANSWER: C) W-9

9. "Accrued Expenses" are expenses that:

 A) Have been paid but not yet used

 B) Have been incurred but not yet paid (e.g., electricity used but not billed)

 C) Are only paid in cash

 D) Decrease the total liabilities
CORRECT ANSWER: B) Have been incurred but not yet paid (e.g., electricity used but not
billed)

10. Which type of account is "Accumulated Depreciation"?

 A) Asset

 B) Contra-Asset

 C) Liability

,  D) Expense
CORRECT ANSWER: B) Contra-Asset

11. "Net Working Capital" is a measure of:

 A) Long-term profitability

 B) A company's short-term liquidity and operational efficiency

 C) Total inventory on hand

 D) The owner's personal net worth
CORRECT ANSWER: B) A company's short-term liquidity and operational efficiency

12. In the "Double-Entry" system, a "Credit" increases which of the following?

 A) Dividends

 B) Expenses

 C) Revenue

 D) Assets
CORRECT ANSWER: C) Revenue

13. What happens to the accounting equation when a business pays a utility bill immediately
with cash?

 A) Assets decrease; Liabilities increase

 B) Assets decrease; Equity decreases

 C) Assets increase; Equity increases

 D) Liabilities decrease; Equity increases
CORRECT ANSWER: B) Assets decrease; Equity decreases

14. Which QuickBooks Online feature allows you to see the history of changes made to a specific
transaction?

 A) Audit Log

 B) Trial Balance

 C) Transaction Journal

 D) Chart of Accounts
CORRECT ANSWER: A) Audit Log

15. "Cost of Goods Sold" (COGS) is closed at the end of the year to which account?

 A) Cash

 B) Retained Earnings (via Income Summary)

 C) Inventory

 D) Accounts Payable
CORRECT ANSWER: B) Retained Earnings (via Income Summary)