INTUIT ACADEMY BOOKKEEPING, PROFESSIONAL CERTIFICATE BASIC BOOKKEEPING QUESTIONS AND ANSWERS

INTUIT ACADEMY BOOKKEEPING,
PROFESSIONAL CERTIFICATE BASIC
BOOKKEEPING QUESTIONS AND
ANSWERS
The Accounting Principle - ANSWER-You can't mix business and personal assets or
expenses.

Accounting Equation - ANSWER-Assets = Liabilities + Owner's Equity
or
Assets - Liabilities = Owner's Equity

Expanded Accounting Equation - ANSWER-Assets = Liabilities + Equity + Revenue -
Expenses - Dividends

The Five Account Types - ANSWER-Assets, Liabilities, Equity, Revenue, Expenses

Normal balance of the five account types - ANSWER-Assets- Normal Dr balance
Expenses- Normal Dr balance
Dividends- Normal Dr balance
Equity- Normal Cr balance
Revenue- Normal Cr balance

General Journal - ANSWER-A list of transactions organized chronologically

Posting to the Ledger - ANSWER-transfer transactions entered in the journal to the
general ledger and categorize transactions by account

Accounting Cycle - ANSWER-a collective process of identifying, analyzing, and
recording the accounting events of a company

Steps in the Accounting Cycle - ANSWER-1. Collect, analyze, and post transactions to
the Journal
2. Post transactions to the ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusting entries at period end
5. Prepare an adjusted trial balance
6. Prepare financial statements

Accounting adjustments - ANSWER-A business transaction that has not yet been
included in the accounting records.
I.E Deferrals, depreciation, and accruals