Intuit Bookkeeping Professional
Certificate Exam Questions With
Revised Correct Answers
Updated
States that an amount can be ignored if its effect on the
financial statements is small and not misleading - ANSWER
Materiality Principle
Once you adopt an accounting principle or method, continue
to follow it consistently in future accounting periods so that the
results reported from period to period are comparable -
ANSWER Consistency Principle
One currency is used throughout all accounting activities. In
the US the dollar is the currency used in accounting. When this
currency is used, inflation is not a consideration in recording
finances - ANSWER Monetary Unit Assumption
, Refers to a business that is stable enough to operate and meet
its obligation for the future - ANSWER Going Concern
Assumption
Revenue is recognized when payment is received and expenses
are recognized when paid out - ANSWER Cash-Basis
Account Method
Revenues are reported when they are earned and expenses
are reported when they are incurred - ANSWER Accrual
Method of Accounting
A combo of cash-basis and accrual methods - ANSWER
Hybrid Accounting
Things your company owns that you can easily convert to cash
and expect to do so within the next 12 months - ANSWER
Currents Assets
Things your company owns that you expect to have for more
than 12 months - ANSWER Long-term Assets
, The total you get when adding all current assets and all long-
term assets. This should equal Total Liabilities+Toal Equity -
ANSWER Total Assets
A physical asset, such as inventory, vehicle, or a building -
ANSWER Tangible Asset
Not a physical asset. Examples would be a copyright, patent, or
brand recoginition - ANSWER Intangible Asset
A signed document containing a written promise to pay a
stated sum to a specified person or bearer at a specified ate or
on-demand - ANSWER Promissory Note
Notes Receivable - ANSWER A current or non-current asset
Notes Payable - ANSWER A current or non-current liability
Interest Equation - ANSWER Principle x Interest (mulitply
by 30/365 to find day)
Certificate Exam Questions With
Revised Correct Answers
Updated
States that an amount can be ignored if its effect on the
financial statements is small and not misleading - ANSWER
Materiality Principle
Once you adopt an accounting principle or method, continue
to follow it consistently in future accounting periods so that the
results reported from period to period are comparable -
ANSWER Consistency Principle
One currency is used throughout all accounting activities. In
the US the dollar is the currency used in accounting. When this
currency is used, inflation is not a consideration in recording
finances - ANSWER Monetary Unit Assumption
, Refers to a business that is stable enough to operate and meet
its obligation for the future - ANSWER Going Concern
Assumption
Revenue is recognized when payment is received and expenses
are recognized when paid out - ANSWER Cash-Basis
Account Method
Revenues are reported when they are earned and expenses
are reported when they are incurred - ANSWER Accrual
Method of Accounting
A combo of cash-basis and accrual methods - ANSWER
Hybrid Accounting
Things your company owns that you can easily convert to cash
and expect to do so within the next 12 months - ANSWER
Currents Assets
Things your company owns that you expect to have for more
than 12 months - ANSWER Long-term Assets
, The total you get when adding all current assets and all long-
term assets. This should equal Total Liabilities+Toal Equity -
ANSWER Total Assets
A physical asset, such as inventory, vehicle, or a building -
ANSWER Tangible Asset
Not a physical asset. Examples would be a copyright, patent, or
brand recoginition - ANSWER Intangible Asset
A signed document containing a written promise to pay a
stated sum to a specified person or bearer at a specified ate or
on-demand - ANSWER Promissory Note
Notes Receivable - ANSWER A current or non-current asset
Notes Payable - ANSWER A current or non-current liability
Interest Equation - ANSWER Principle x Interest (mulitply
by 30/365 to find day)
