Intuit Academy Bookkeeping Professional
Certificate Bookkeeping Basics
Questions and Answers
1. The Accounting Principle
Answer You can't mix business and personal assets or expenses.
2. Accounting Equation
Answer Assets = Liabilities + Owner's Equity
or
Assets - Liabilities = Owner's Equity
3. Expanded Accounting Equation
Answer Assets = Liabilities + Equity + Revenue - Expenses – Dividends
4. The Five Account Types
Answer Assets, Liabilities, Equity, Revenue, Expenses
5. Normal balance of the five account types
Answer Assets- Normal Dr balance
Expenses- Normal Dr
balance Dividends-
Normal Dr balance
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, Equity- Normal Cr
balance Revenue- Normal
Cr balance
6. General Journal
Answer A list of transactions organized chronologically
7. Posting to the Ledger
Answer transfer transactions entered in the journal to the general ledger and categorize
transactions by account
8. Accounting Cycle
Answer a collective process of identifying, analyzing, and recording the accounting events of a
company
9. Steps in the Accounting Cycle
Answer 1. Collect, analyze, and post transactions to the Journal
2. Post transactions to the ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusting entries at period end
5. Prepare an adjusted trial balance
6. Prepare financial statements
10. Accounting adjustments
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Certificate Bookkeeping Basics
Questions and Answers
1. The Accounting Principle
Answer You can't mix business and personal assets or expenses.
2. Accounting Equation
Answer Assets = Liabilities + Owner's Equity
or
Assets - Liabilities = Owner's Equity
3. Expanded Accounting Equation
Answer Assets = Liabilities + Equity + Revenue - Expenses – Dividends
4. The Five Account Types
Answer Assets, Liabilities, Equity, Revenue, Expenses
5. Normal balance of the five account types
Answer Assets- Normal Dr balance
Expenses- Normal Dr
balance Dividends-
Normal Dr balance
1/
6
, Equity- Normal Cr
balance Revenue- Normal
Cr balance
6. General Journal
Answer A list of transactions organized chronologically
7. Posting to the Ledger
Answer transfer transactions entered in the journal to the general ledger and categorize
transactions by account
8. Accounting Cycle
Answer a collective process of identifying, analyzing, and recording the accounting events of a
company
9. Steps in the Accounting Cycle
Answer 1. Collect, analyze, and post transactions to the Journal
2. Post transactions to the ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusting entries at period end
5. Prepare an adjusted trial balance
6. Prepare financial statements
10. Accounting adjustments
2/
6
