INTUIT BOOKKEEPING ACTUAL EXAM
FULL QUESTIONS AND CORRECT ANSWERS
GRADED A PLUS
●● What are the steps of the accounting cycle ?
Answer: 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 a customer pays at the time of sale, you record it as a
Answer: Sales Receipt
●● If a customer does NOT PAY at the time of sale, you must enter it as
an
Answer: Invoice
●● When a customer pays an invoice, you go to...
Answer: "Receive Payment" to record that the payment has been made.
,●● After you record a Sales Receipt or Receive Payment, you follow up
by making a...
Answer: Bank Deposit.
-> Sales Receipt or Receive Payment shows that you've received money
from the customer.
-> Bank Deposit means you're putting that money into your bank
account.
●● Step 4 of the Accounting Cycle: Preparing Adjusting Entries
includes:
Answer: 1) Deferrals
2) Accruals
3) Missing Transactions
4) Tax Adjustments
●● Deferral
Answer: Delaying the recognition of a transaction to a future period
-> It's waiting to recognize that income or expense until the right time
(like when the insurance coverage starts)
●● Reliability assumption
Answer: Only transactions that can be proven should be recorded in
accounting practices.
, -> Businesses must be able to prove transactions through such things as
receipts, billing statements, invoices, and bank statements.
●● Full Disclosure Principle
Answer: 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.
●● Conservatism Assumption
Answer: When choosing between two solutions, one that will be least
likely to overstate assets and income should be selected.
●● Materiality Principle
Answer: An amount can be ignored if its effect on the financial
statements is small and not misleading.
●● Consistency principle
Answer: Once you adopt an accounting principle or method, continue to
follow it consistently in future accounting periods so that the results
reporting from period to period are comparable.
●● Monetary Unit Assumption
FULL QUESTIONS AND CORRECT ANSWERS
GRADED A PLUS
●● What are the steps of the accounting cycle ?
Answer: 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 a customer pays at the time of sale, you record it as a
Answer: Sales Receipt
●● If a customer does NOT PAY at the time of sale, you must enter it as
an
Answer: Invoice
●● When a customer pays an invoice, you go to...
Answer: "Receive Payment" to record that the payment has been made.
,●● After you record a Sales Receipt or Receive Payment, you follow up
by making a...
Answer: Bank Deposit.
-> Sales Receipt or Receive Payment shows that you've received money
from the customer.
-> Bank Deposit means you're putting that money into your bank
account.
●● Step 4 of the Accounting Cycle: Preparing Adjusting Entries
includes:
Answer: 1) Deferrals
2) Accruals
3) Missing Transactions
4) Tax Adjustments
●● Deferral
Answer: Delaying the recognition of a transaction to a future period
-> It's waiting to recognize that income or expense until the right time
(like when the insurance coverage starts)
●● Reliability assumption
Answer: Only transactions that can be proven should be recorded in
accounting practices.
, -> Businesses must be able to prove transactions through such things as
receipts, billing statements, invoices, and bank statements.
●● Full Disclosure Principle
Answer: 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.
●● Conservatism Assumption
Answer: When choosing between two solutions, one that will be least
likely to overstate assets and income should be selected.
●● Materiality Principle
Answer: An amount can be ignored if its effect on the financial
statements is small and not misleading.
●● Consistency principle
Answer: Once you adopt an accounting principle or method, continue to
follow it consistently in future accounting periods so that the results
reporting from period to period are comparable.
●● Monetary Unit Assumption
