Intuit Bookkeeping Certification Test Questions
with Verified Correct Answers
What is the accounting equation?
Assets = Liabilities + Owner's Equity
What is an ASSET?
What a business owns, cash, buildings, etc
What is a LIABILITY?
Business obligations like loans, unpaid bills
What is EQUITY?
The value of a business if the owner were to liquidate all assets and pay off all liabilities
What is the BALANCE SHEET?
The accounting equation displayed as a financial stateent. The core financial document of a
business.
The accounting equation is the foundation of the balance sheet.
What is a DEBIT?
An increase in assets or expenses, or a decrease i liabilities, owners equity or revenue.
What is a CREDIT?
A decrease in assets or expenses, or an icnrease in liabilities, owners equity or revenue.
Debits and Credits must always be ______?
Equal
, What is EQUITY?
The owners stake in the business.
What is the order of financial recording?
Collect/Analyze Transactions
Record/Post Transactions
Prepare Unadjusted Trial Balance
Prepare Adjusting Entries
Prepare Adjusted Trial Balance
Prepare Financial Statements
What is the INCOME STATEMENT?
Shows the business revenues and expenses for a specific period. Also known as a Profit &
Loss Statement or P&L
What is the BALANCE SHEET?
A snapshot of business asset, liabilities & equity at a particular moment.
What is the STATEMENT OF EQUITY?
Tracking the changes in the business equity, starting rom the opeing balance to the ending
balance for the period.
What is the STATEMENT OF CASHFLOW?
Provides information about the sources and uses of cash by the business, offering insights
into cash inflows and outflows.
What is the MATCHING PRINCIPLE?
Businesses should match related revenue and epenses in the same period.
with Verified Correct Answers
What is the accounting equation?
Assets = Liabilities + Owner's Equity
What is an ASSET?
What a business owns, cash, buildings, etc
What is a LIABILITY?
Business obligations like loans, unpaid bills
What is EQUITY?
The value of a business if the owner were to liquidate all assets and pay off all liabilities
What is the BALANCE SHEET?
The accounting equation displayed as a financial stateent. The core financial document of a
business.
The accounting equation is the foundation of the balance sheet.
What is a DEBIT?
An increase in assets or expenses, or a decrease i liabilities, owners equity or revenue.
What is a CREDIT?
A decrease in assets or expenses, or an icnrease in liabilities, owners equity or revenue.
Debits and Credits must always be ______?
Equal
, What is EQUITY?
The owners stake in the business.
What is the order of financial recording?
Collect/Analyze Transactions
Record/Post Transactions
Prepare Unadjusted Trial Balance
Prepare Adjusting Entries
Prepare Adjusted Trial Balance
Prepare Financial Statements
What is the INCOME STATEMENT?
Shows the business revenues and expenses for a specific period. Also known as a Profit &
Loss Statement or P&L
What is the BALANCE SHEET?
A snapshot of business asset, liabilities & equity at a particular moment.
What is the STATEMENT OF EQUITY?
Tracking the changes in the business equity, starting rom the opeing balance to the ending
balance for the period.
What is the STATEMENT OF CASHFLOW?
Provides information about the sources and uses of cash by the business, offering insights
into cash inflows and outflows.
What is the MATCHING PRINCIPLE?
Businesses should match related revenue and epenses in the same period.
