2026|2027 INTUIT BOOKKEEPING LATEST EXAM | QUESTIONS WITH 100% VERIFIED ANSWERS
Four Key Elements of Bookkeeping Ethics ✔️Honesty, Objectivity, Confidentiality and Professionalism
What is DEALER ✔️Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) + Revenue
What's is the accounting Equation? ✔️Assets = Liabilities + Equity
Profit and Loss statement. Shows the company's revenues and expenses during a particular period ✔️The Income Statement
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
States that an amount can be ignored if its effect on the financial statements is small and not misleading ✔️Materiality Principle
Once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods so that the results reported
from period to period are comparable ✔️Consistency Principle
One currency is used throughout all accounting activities. In the US the dollar is the currency used in accounting. When this currency is used,
inflation is not a consideration in recording finances ✔️Monetary Unit Assumption
Refers to a business that is stable enough to operate and meet its obligation for the future ✔️Going Concern Assumption
Four Key Elements of Bookkeeping Ethics ✔️Honesty, Objectivity, Confidentiality and Professionalism
What is DEALER ✔️Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) + Revenue
What's is the accounting Equation? ✔️Assets = Liabilities + Equity
Profit and Loss statement. Shows the company's revenues and expenses during a particular period ✔️The Income Statement
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
States that an amount can be ignored if its effect on the financial statements is small and not misleading ✔️Materiality Principle
Once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods so that the results reported
from period to period are comparable ✔️Consistency Principle
One currency is used throughout all accounting activities. In the US the dollar is the currency used in accounting. When this currency is used,
inflation is not a consideration in recording finances ✔️Monetary Unit Assumption
Refers to a business that is stable enough to operate and meet its obligation for the future ✔️Going Concern Assumption
