INTUIT BOOKKEEPING TEST PAPER
QUESTIONS AND SOLUTIONS COMPLETE
REVIEW MATERIAL
●● A business owner performs a service and is paid when the job is
performed. The owner would then enter this transaction into accounting
software as:
Answer: - A Sales Receipt
●● A business owner performs a service but is not paid when the job is
performed. Using their accounting software, the owner would enter the
transaction as:
Answer: - An Invoice
●● A company is considered a Going Concern when it:
Answer: - Is stable, able to operate and able to meet its financial
obligations.
●● A customer paid in advance for a service. They need to cancel the
service. If the business owner wishes to apply that money towards the
customer's next service, the owner would enter that transaction into their
accounting software as:
Answer: - A Credit Memo
,●● A form or statement that lists the titles and balances of all ledger
accounts at a given date is known as:
Answer: - Trial balance
●● A listing of the names of the accounts that a company has identified
and made available for recording transactions in its general ledger is
known as a:
Answer: - Chart of Accounts
●● A sales manager purchases office supplies with the company credit
card. This transaction impacts the accounts payable and the office
supplies accounts. In your journal entry, which account do you credit?
Answer: - Accounts payable
●● A schedule that contains all accounts needed to prepare financial
statements is known as:
Answer: - The General Ledger
●● A seasonal business like Lou's Landscaping can have decreased cash
during off-season months. Which financial statement would show the
cash inflows and outflows for a particular month?
Answer: - Cash Flow Statement
, ●● A trial balance that is prepared after taking into account all the
adjusting entries is known as:
Answer: - Adjusted Trial Balance
●● A trial balance where total debits equal total credits indicates:
Answer: - The ledger is in balance.
●● A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as:
Answer: - Double-entry Accounting
●● According to the Revenue Recognition Principle, when should a
business recognize its revenue?
Answer: - When it is earned
●● Accounts payable would be an example of what kind of account?
Answer: - A liability account.
●● Accounts receivable would be an example of what kind of account?
Answer: - An asset account.
●● After analysis, the business transaction is recorded in the journal in:
Answer: - Chronological order
QUESTIONS AND SOLUTIONS COMPLETE
REVIEW MATERIAL
●● A business owner performs a service and is paid when the job is
performed. The owner would then enter this transaction into accounting
software as:
Answer: - A Sales Receipt
●● A business owner performs a service but is not paid when the job is
performed. Using their accounting software, the owner would enter the
transaction as:
Answer: - An Invoice
●● A company is considered a Going Concern when it:
Answer: - Is stable, able to operate and able to meet its financial
obligations.
●● A customer paid in advance for a service. They need to cancel the
service. If the business owner wishes to apply that money towards the
customer's next service, the owner would enter that transaction into their
accounting software as:
Answer: - A Credit Memo
,●● A form or statement that lists the titles and balances of all ledger
accounts at a given date is known as:
Answer: - Trial balance
●● A listing of the names of the accounts that a company has identified
and made available for recording transactions in its general ledger is
known as a:
Answer: - Chart of Accounts
●● A sales manager purchases office supplies with the company credit
card. This transaction impacts the accounts payable and the office
supplies accounts. In your journal entry, which account do you credit?
Answer: - Accounts payable
●● A schedule that contains all accounts needed to prepare financial
statements is known as:
Answer: - The General Ledger
●● A seasonal business like Lou's Landscaping can have decreased cash
during off-season months. Which financial statement would show the
cash inflows and outflows for a particular month?
Answer: - Cash Flow Statement
, ●● A trial balance that is prepared after taking into account all the
adjusting entries is known as:
Answer: - Adjusted Trial Balance
●● A trial balance where total debits equal total credits indicates:
Answer: - The ledger is in balance.
●● A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as:
Answer: - Double-entry Accounting
●● According to the Revenue Recognition Principle, when should a
business recognize its revenue?
Answer: - When it is earned
●● Accounts payable would be an example of what kind of account?
Answer: - A liability account.
●● Accounts receivable would be an example of what kind of account?
Answer: - An asset account.
●● After analysis, the business transaction is recorded in the journal in:
Answer: - Chronological order
