BOOKKEEPING CLASS BY INTUIT
ASSSESSMENT TEST QUESTIONS WITH
CORRECT ANSWERS
Bookkeepers typically... -ANSWER- Record financial transactions, reconcile bank
accounts, manage accounts receivable, manage accounts payable, work with tax
preparers and assist with tax compliance, and generate financial statements.
As a bookkeeper what would Honesty mean? -ANSWER- Reporting financial data
accordingly and timely, owning up to and trying ti fix any mistakes, and being open and
transparent with clients about their business.
As a bookkeeper what would Objectivity mean? -ANSWER- Not taking any jobs/ clients
that could pose conflict of interest, not allowing outside parties to influence findings, not
letting personal bias get in the way of your performance.
As a bookkeeper what would Confidentiality mean? -ANSWER- Not discussing
business details outside of the job and NEVER using inside information for personal
gain.
As a bookkeeper what would Professionalism mean? -ANSWER- Being considerate of
clients needs/ time, avoiding personal/professional activities that could bring shame to
profession/business, maintaining proper credentials, and keeping skills through
continuing education.
What is the Accounting Equation -ANSWER- Assets=Liability+ Equity
What are some examples of a Liability? -ANSWER- Morgage,(money owed to a lender)
Credit Card(s)- (money borrowed from bank with expectation of paying it back)
Payroll or sales tax owed to a government-(most business will owe one or more types of
taxes to federal, state, or local governments)
What are some examples of an Asset? -ANSWER- Accounts Receivable-(money owed
to the business by customers)
Investments in other companies-( potentially sell for cash)
What are some examples of Equity? -ANSWER- Money invested into the company by
one or more owners
Double-Entry Accounting -ANSWER- A common way to record transactions records
which accounts increase and decrease. Recorded in debit and credit columns. (Totals
HAVE to be balanced)
, What side can debits and credits be found on? -ANSWER- Debits are on the left
Credits are on the right
How do you know if something is a Debit or a Credit? -ANSWER- Ask yourself, What
kind of account are we looking at? and Is the balance increasing or decreasing?
What are the 5 account types? -ANSWER- Assets
Liability
Equity
Revenue
Expenses
What is the expanded Accounting Equation? -ANSWER- {Assets=Liabilities+ Equity}+
[Revenues- Expenses]
{Balance Sheet} [Income statement]
{Assets+ Expenses}=[Liabilities+ Equity+ Revenue]
How do Debits and Credits work in an ASSETS Account? -ANSWER- Debits are an
increase and Credits are a decrease
How do Debits and Credits work in a LIABILITIES Account? -ANSWER- Debits are a
decrease and Credits are an increase
How do Debits and Credits work in an EQUITY Account? -ANSWER- Debits are a
decrease and Credits are an increase
What does the acronym DEALER mean? -ANSWER- to increase an account you will
Debit and Expense or Asset account but credit a Liability, Equity, or Revenue account.
How would you record a $100 cash payment to the tractor store? -ANSWER- We would
record it as a CREDIT because it's DECREASING an ASSET (in this case cash)
How are credits used in double entry -ANSWER- Decrease in assets/ expenses.
Increase liabilities/ equity
How are debits used in double entry -ANSWER- Increase assets/ expenses. Decrease
liabilities/ equity.
What is the Chart of Accounts? -ANSWER- A way to organize the accounts, their
purpose, and account numbers. It's organized by type of account. (First number of
account goes with what account type ex. Assets start with a 1, Liabilities start with a 2,
ect.)
What is the first step to the Accounting Cycle? -ANSWER- Collect and analyze
transactions. (Receipts, Invoices, Bank Statements)
ASSSESSMENT TEST QUESTIONS WITH
CORRECT ANSWERS
Bookkeepers typically... -ANSWER- Record financial transactions, reconcile bank
accounts, manage accounts receivable, manage accounts payable, work with tax
preparers and assist with tax compliance, and generate financial statements.
As a bookkeeper what would Honesty mean? -ANSWER- Reporting financial data
accordingly and timely, owning up to and trying ti fix any mistakes, and being open and
transparent with clients about their business.
As a bookkeeper what would Objectivity mean? -ANSWER- Not taking any jobs/ clients
that could pose conflict of interest, not allowing outside parties to influence findings, not
letting personal bias get in the way of your performance.
As a bookkeeper what would Confidentiality mean? -ANSWER- Not discussing
business details outside of the job and NEVER using inside information for personal
gain.
As a bookkeeper what would Professionalism mean? -ANSWER- Being considerate of
clients needs/ time, avoiding personal/professional activities that could bring shame to
profession/business, maintaining proper credentials, and keeping skills through
continuing education.
What is the Accounting Equation -ANSWER- Assets=Liability+ Equity
What are some examples of a Liability? -ANSWER- Morgage,(money owed to a lender)
Credit Card(s)- (money borrowed from bank with expectation of paying it back)
Payroll or sales tax owed to a government-(most business will owe one or more types of
taxes to federal, state, or local governments)
What are some examples of an Asset? -ANSWER- Accounts Receivable-(money owed
to the business by customers)
Investments in other companies-( potentially sell for cash)
What are some examples of Equity? -ANSWER- Money invested into the company by
one or more owners
Double-Entry Accounting -ANSWER- A common way to record transactions records
which accounts increase and decrease. Recorded in debit and credit columns. (Totals
HAVE to be balanced)
, What side can debits and credits be found on? -ANSWER- Debits are on the left
Credits are on the right
How do you know if something is a Debit or a Credit? -ANSWER- Ask yourself, What
kind of account are we looking at? and Is the balance increasing or decreasing?
What are the 5 account types? -ANSWER- Assets
Liability
Equity
Revenue
Expenses
What is the expanded Accounting Equation? -ANSWER- {Assets=Liabilities+ Equity}+
[Revenues- Expenses]
{Balance Sheet} [Income statement]
{Assets+ Expenses}=[Liabilities+ Equity+ Revenue]
How do Debits and Credits work in an ASSETS Account? -ANSWER- Debits are an
increase and Credits are a decrease
How do Debits and Credits work in a LIABILITIES Account? -ANSWER- Debits are a
decrease and Credits are an increase
How do Debits and Credits work in an EQUITY Account? -ANSWER- Debits are a
decrease and Credits are an increase
What does the acronym DEALER mean? -ANSWER- to increase an account you will
Debit and Expense or Asset account but credit a Liability, Equity, or Revenue account.
How would you record a $100 cash payment to the tractor store? -ANSWER- We would
record it as a CREDIT because it's DECREASING an ASSET (in this case cash)
How are credits used in double entry -ANSWER- Decrease in assets/ expenses.
Increase liabilities/ equity
How are debits used in double entry -ANSWER- Increase assets/ expenses. Decrease
liabilities/ equity.
What is the Chart of Accounts? -ANSWER- A way to organize the accounts, their
purpose, and account numbers. It's organized by type of account. (First number of
account goes with what account type ex. Assets start with a 1, Liabilities start with a 2,
ect.)
What is the first step to the Accounting Cycle? -ANSWER- Collect and analyze
transactions. (Receipts, Invoices, Bank Statements)
