INTUIT BOOKKEEPING CERT 2026
INTUIT BOOKKEEPING PROFESSIONAL
CERTIFICATE 2026: COMPLETE PRACTICE
EXAMINATION — 200 Verified Questions with
Expert Rationales Aligned to Intuit Academy
Bookkeeping Professional Certificate Blueprint
SECTION 1: BOOKKEEPING BASICS (Questions 1-50)
Question 1
QUESTION:
What are the five account types used in double-entry bookkeeping?
A. Assets, Liabilities, Equity, Revenue, Expenses
B. Assets, Liabilities, Capital, Drawings, Revenue
C. Cash, Accounts Receivable, Inventory, Equipment, Payables
D. Debits, Credits, Balances, Journals, Ledgers
ANSWER:
A. Assets, Liabilities, Equity, Revenue, Expenses
RATIONALE:
The five fundamental account types are Assets, Liabilities, Equity, Revenue, and Expenses. These
categories form the foundation of the accounting system, with each type having specific rules for
increases and decreases through debits and credits. Option B incorrectly includes Capital and
Drawings, which are subcategories of Equity. Option C lists specific asset accounts rather than
account types. Option D describes accounting processes rather than account classifications.
Question 2
QUESTION:
Which of the following best defines a debit as used in double-entry accounting?
A. An increase in liabilities and owner's equity
B. An increase in assets and expenses and a decrease in liabilities, owner's equity, and revenue
C. A decrease in assets and expenses
D. An increase in revenue and a decrease in expenses
ANSWER:
B. An increase in assets and expenses and a decrease in liabilities, owner's equity, and revenue
RATIONALE:
Debits increase asset and expense accounts while decreasing liability, owner's equity, and revenue
accounts. This follows the DEA/LER mnemonic where DEA stands for Debits increase Expenses and
Assets, while LER represents Liabilities, Equity, and Revenue which increase with credits. Option A
, INTUIT BOOKKEEPING CERT 2026
describes a credit effect. Option C is the opposite of how debits affect assets and expenses. Option D
is incorrect as revenue increases with credits, not debits.
Question 3
QUESTION:
What does the mnemonic DEA/LER stand for in bookkeeping?
A. Debit Expenses and Assets / Credit Liabilities, Equity, Revenue
B. Debit Equity and Assets / Credit Liabilities, Expenses, Revenue
C. Debit Expenses and Liabilities / Credit Assets, Equity, Revenue
D. Debit All Accounts / Credit Equal Rows
ANSWER:
A. Debit Expenses and Assets / Credit Liabilities, Equity, Revenue
RATIONALE:
DEA/LER is a helpful mnemonic that reminds bookkeepers which account types increase with debits
(DEA: Debit Expenses and Assets) and which increase with credits (LER: Credit Liabilities, Equity,
Revenue). Option B incorrectly lists Equity under debits. Option C incorrectly places Liabilities under
debits and Assets under credits. Option D is not a recognized bookkeeping mnemonic.
Question 4
QUESTION:
A schedule that contains all accounts needed to prepare financial statements is known as the:
A. Chart of Accounts
B. Trial Balance
C. General Ledger
D. Journal Entry
ANSWER:
C. General Ledger
RATIONALE:
The General Ledger is a complete record containing all accounts needed to prepare financial
statements. It contains the summarized activity for each account and serves as the master reference
for financial statement preparation. The Chart of Accounts (Option A) is simply a listing of account
names and numbers. The Trial Balance (Option B) is a report listing account balances at a specific
point in time. Journal Entries (Option D) record individual transactions.
Question 5
QUESTION:
Reorganizing journal entries and grouping them by account is known as:
A. Journalizing
B. Posting to the ledger
C. Preparing the trial balance
D. Closing the books
, INTUIT BOOKKEEPING CERT 2026
ANSWER:
B. Posting to the ledger
RATIONALE:
Posting is the process of transferring information from journal entries to the general ledger
accounts, which involves reorganizing entries and grouping them by account. Journalizing (Option A)
is the initial recording of transactions in the journal. Preparing the trial balance (Option C) occurs
after posting. Closing the books (Option D) is the final step of the accounting cycle to prepare for the
next period.
Question 6
QUESTION:
Your client was paid in cash for a service they provided. They have asked you to leave it off their
financial records. Since you are employed by the client, what should you do?
A. Follow the client's instructions because they are your employer
B. Record the transaction but note the client's request
C. Decline to follow the instruction and record the transaction properly
D. Report the client to the IRS immediately
ANSWER:
C. Decline to follow the instruction and record the transaction properly
RATIONALE:
Bookkeepers have ethical and professional responsibilities to maintain the integrity of financial
information. Failing to record a cash receipt would constitute fraudulent financial reporting. Option
A violates professional ethics. Option B still allows unethical behavior. Option D is extreme; reporting
is not the immediate appropriate action.
Question 7
QUESTION:
What is the correct accounting equation that includes revenue and expenses?
A. Assets = Liabilities + Equity
B. Assets + Expenses = Liabilities + Equity + Revenue
C. Assets = Liabilities + Equity + Revenue - Expenses
D. Assets - Liabilities = Equity
ANSWER:
C. Assets = Liabilities + Equity + Revenue - Expenses
RATIONALE:
The expanded accounting equation recognizes that profit (Revenue - Expenses) increases equity:
Assets = Liabilities + Equity + Revenue - Expenses. Option A is the basic accounting equation but
doesn't show how revenue and expenses affect equity. Option B is an incorrect rearrangement.
Option D is a correct rearrangement but doesn't include revenue and expenses.
Question 8
QUESTION:
Which of the following is NOT a typical task performed by a bookkeeper?
, INTUIT BOOKKEEPING CERT 2026
A. Handling bank feeds and reconciling bank accounts
B. Managing accounts receivable and accounts payable
C. Recording financial transactions
D. Auditing financial statements for external reporting
ANSWER:
D. Auditing financial statements for external reporting
RATIONALE:
Bookkeepers handle bank feeds, reconcile accounts, manage receivables and payables, and record
financial transactions. Auditing financial statements for external reporting is typically performed by
external auditors, not bookkeepers, as it requires independent verification of financial information.
Bookkeepers record and organize data; auditors verify its accuracy.
Question 9
QUESTION:
What is the first step of the accounting cycle?
A. Prepare adjusting entries
B. Prepare financial statements
C. Collect and analyze transactions
D. Post transactions to the ledger
ANSWER:
C. Collect and analyze transactions
RATIONALE:
The accounting cycle begins with the collection and analysis of business transactions. This involves
identifying economic events and determining their financial impact. Preparation of adjusting entries
(Option A) occurs later in the cycle. Preparing financial statements (Option B) is near the end.
Posting to the ledger (Option D) occurs after journal entries are recorded.
Question 10
QUESTION:
What the company owns or controls and expects to gain value from is defined as:
A. Liabilities
B. Equity
C. Assets
D. Revenue
ANSWER:
C. Assets
RATIONALE:
Assets represent what a company owns or controls and from which it expects to gain future
economic value. Liabilities (Option A) are what the company owes to others. Equity (Option B) is the
owner's stake in the company. Revenue (Option D) is income generated from business operations.
Question 11
INTUIT BOOKKEEPING PROFESSIONAL
CERTIFICATE 2026: COMPLETE PRACTICE
EXAMINATION — 200 Verified Questions with
Expert Rationales Aligned to Intuit Academy
Bookkeeping Professional Certificate Blueprint
SECTION 1: BOOKKEEPING BASICS (Questions 1-50)
Question 1
QUESTION:
What are the five account types used in double-entry bookkeeping?
A. Assets, Liabilities, Equity, Revenue, Expenses
B. Assets, Liabilities, Capital, Drawings, Revenue
C. Cash, Accounts Receivable, Inventory, Equipment, Payables
D. Debits, Credits, Balances, Journals, Ledgers
ANSWER:
A. Assets, Liabilities, Equity, Revenue, Expenses
RATIONALE:
The five fundamental account types are Assets, Liabilities, Equity, Revenue, and Expenses. These
categories form the foundation of the accounting system, with each type having specific rules for
increases and decreases through debits and credits. Option B incorrectly includes Capital and
Drawings, which are subcategories of Equity. Option C lists specific asset accounts rather than
account types. Option D describes accounting processes rather than account classifications.
Question 2
QUESTION:
Which of the following best defines a debit as used in double-entry accounting?
A. An increase in liabilities and owner's equity
B. An increase in assets and expenses and a decrease in liabilities, owner's equity, and revenue
C. A decrease in assets and expenses
D. An increase in revenue and a decrease in expenses
ANSWER:
B. An increase in assets and expenses and a decrease in liabilities, owner's equity, and revenue
RATIONALE:
Debits increase asset and expense accounts while decreasing liability, owner's equity, and revenue
accounts. This follows the DEA/LER mnemonic where DEA stands for Debits increase Expenses and
Assets, while LER represents Liabilities, Equity, and Revenue which increase with credits. Option A
, INTUIT BOOKKEEPING CERT 2026
describes a credit effect. Option C is the opposite of how debits affect assets and expenses. Option D
is incorrect as revenue increases with credits, not debits.
Question 3
QUESTION:
What does the mnemonic DEA/LER stand for in bookkeeping?
A. Debit Expenses and Assets / Credit Liabilities, Equity, Revenue
B. Debit Equity and Assets / Credit Liabilities, Expenses, Revenue
C. Debit Expenses and Liabilities / Credit Assets, Equity, Revenue
D. Debit All Accounts / Credit Equal Rows
ANSWER:
A. Debit Expenses and Assets / Credit Liabilities, Equity, Revenue
RATIONALE:
DEA/LER is a helpful mnemonic that reminds bookkeepers which account types increase with debits
(DEA: Debit Expenses and Assets) and which increase with credits (LER: Credit Liabilities, Equity,
Revenue). Option B incorrectly lists Equity under debits. Option C incorrectly places Liabilities under
debits and Assets under credits. Option D is not a recognized bookkeeping mnemonic.
Question 4
QUESTION:
A schedule that contains all accounts needed to prepare financial statements is known as the:
A. Chart of Accounts
B. Trial Balance
C. General Ledger
D. Journal Entry
ANSWER:
C. General Ledger
RATIONALE:
The General Ledger is a complete record containing all accounts needed to prepare financial
statements. It contains the summarized activity for each account and serves as the master reference
for financial statement preparation. The Chart of Accounts (Option A) is simply a listing of account
names and numbers. The Trial Balance (Option B) is a report listing account balances at a specific
point in time. Journal Entries (Option D) record individual transactions.
Question 5
QUESTION:
Reorganizing journal entries and grouping them by account is known as:
A. Journalizing
B. Posting to the ledger
C. Preparing the trial balance
D. Closing the books
, INTUIT BOOKKEEPING CERT 2026
ANSWER:
B. Posting to the ledger
RATIONALE:
Posting is the process of transferring information from journal entries to the general ledger
accounts, which involves reorganizing entries and grouping them by account. Journalizing (Option A)
is the initial recording of transactions in the journal. Preparing the trial balance (Option C) occurs
after posting. Closing the books (Option D) is the final step of the accounting cycle to prepare for the
next period.
Question 6
QUESTION:
Your client was paid in cash for a service they provided. They have asked you to leave it off their
financial records. Since you are employed by the client, what should you do?
A. Follow the client's instructions because they are your employer
B. Record the transaction but note the client's request
C. Decline to follow the instruction and record the transaction properly
D. Report the client to the IRS immediately
ANSWER:
C. Decline to follow the instruction and record the transaction properly
RATIONALE:
Bookkeepers have ethical and professional responsibilities to maintain the integrity of financial
information. Failing to record a cash receipt would constitute fraudulent financial reporting. Option
A violates professional ethics. Option B still allows unethical behavior. Option D is extreme; reporting
is not the immediate appropriate action.
Question 7
QUESTION:
What is the correct accounting equation that includes revenue and expenses?
A. Assets = Liabilities + Equity
B. Assets + Expenses = Liabilities + Equity + Revenue
C. Assets = Liabilities + Equity + Revenue - Expenses
D. Assets - Liabilities = Equity
ANSWER:
C. Assets = Liabilities + Equity + Revenue - Expenses
RATIONALE:
The expanded accounting equation recognizes that profit (Revenue - Expenses) increases equity:
Assets = Liabilities + Equity + Revenue - Expenses. Option A is the basic accounting equation but
doesn't show how revenue and expenses affect equity. Option B is an incorrect rearrangement.
Option D is a correct rearrangement but doesn't include revenue and expenses.
Question 8
QUESTION:
Which of the following is NOT a typical task performed by a bookkeeper?
, INTUIT BOOKKEEPING CERT 2026
A. Handling bank feeds and reconciling bank accounts
B. Managing accounts receivable and accounts payable
C. Recording financial transactions
D. Auditing financial statements for external reporting
ANSWER:
D. Auditing financial statements for external reporting
RATIONALE:
Bookkeepers handle bank feeds, reconcile accounts, manage receivables and payables, and record
financial transactions. Auditing financial statements for external reporting is typically performed by
external auditors, not bookkeepers, as it requires independent verification of financial information.
Bookkeepers record and organize data; auditors verify its accuracy.
Question 9
QUESTION:
What is the first step of the accounting cycle?
A. Prepare adjusting entries
B. Prepare financial statements
C. Collect and analyze transactions
D. Post transactions to the ledger
ANSWER:
C. Collect and analyze transactions
RATIONALE:
The accounting cycle begins with the collection and analysis of business transactions. This involves
identifying economic events and determining their financial impact. Preparation of adjusting entries
(Option A) occurs later in the cycle. Preparing financial statements (Option B) is near the end.
Posting to the ledger (Option D) occurs after journal entries are recorded.
Question 10
QUESTION:
What the company owns or controls and expects to gain value from is defined as:
A. Liabilities
B. Equity
C. Assets
D. Revenue
ANSWER:
C. Assets
RATIONALE:
Assets represent what a company owns or controls and from which it expects to gain future
economic value. Liabilities (Option A) are what the company owes to others. Equity (Option B) is the
owner's stake in the company. Revenue (Option D) is income generated from business operations.
Question 11
