Intuit Bookkeeping Professional Certificate
Exam Questions With Correct Answers
What are the 5 Account Types? - VERIFIED ANSWER✔✔-- Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? - VERIFIED ANSWER✔✔-Assets = Liabilities + Equity + Revenue - Expenses
What does DEA/LER stand for? - VERIFIED ANSWER✔✔-- Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
What are the 6 steps of the Accounting-Cycle? - VERIFIED ANSWER✔✔-- Collect and Analyze Transactions
- Record/Post transactions to the ledger
- Prepare and unadjusted trial balance
- Prepare adjusting entries at the end of the period
- Prepare an adjusted trial balance
- Prepare financial statements
What are the 4 Types of financial statements? - VERIFIED ANSWER✔✔-- The income statement
- The balance sheet
- The statement of equity
- The statement of cash flow
What are the 4 types of accounting adjustments? - VERIFIED ANSWER✔✔-- Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? - VERIFIED ANSWER✔✔-- Handle bank feeds and reconciles bank
accounts, managing accounts receivable/payable, and record financial transactions
Mary Smith is the owner and operator of Smith Construction. At the end of the company's accounting period,
December 31, 2020, Smith Construction has assets totaling $760,000 and liabilities totaling $240,000.
Use the accounting equation to calculate what Mary's Owner Equity would be as of December 31, 2020. -
VERIFIED ANSWER✔✔-- $520,000
Mike Anderson is the owner and operator of Anderson Consulting. At the end of 2019, the company's assets
totaled $500,000 and its liabilities totaled $175,000. Assuming that over the 2020 fiscal year, assets increased by
$120,000 and liabilities increased by $72,000, use the accounting equation to determine what Mike's Owner's
equity will be as of December 31, 2020? - VERIFIED ANSWER✔✔-- $373,000
Maria Garcia owns a software consulting firm. At the beginning of 2019, her firm had assets of $800,000 and
liabilities of $185,000. Assuming that assets decreased by $52,000 and liabilities increased by $24,000 during
2020, use the accounting equation to calculate equity at the end of 2020. - VERIFIED ANSWER✔✔-- $539,000
, The accounting equation can be defined as: - VERIFIED ANSWER✔✔-- Assets = Liability + Equity
What the company owns or controls and expects to gain value from is defined as: - VERIFIED ANSWER✔✔-- A
n Asset
What the company owes to others is defined as: - VERIFIED ANSWER✔✔-- Liabilities
The owner's stake in the company is defined as: - VERIFIED ANSWER✔✔-- Equity
A way of bookkeeping that tracks which accounts increase and which decrease for a given transaction is known
as: - VERIFIED ANSWER✔✔-- Double-entry Accounting
Which of the following best defines a credit as it's used in double-entry accounting? - VERIFIED ANSWER✔✔--
A decrease in assets/expenses and an increase in liabilities/owner's equity and revenue.
Which of the following best defines a debit as it's used in double-entry accounting? - VERIFIED ANSWER✔✔--
An increase in assets/expenses and a decrease in liabilities/owner's equity and revenue.
You purchased inventory from your vendor and paid cash. The accounts affected are the inventory account and
the cash account. In your journal entry, which account would you debit? - VERIFIED ANSWER✔✔-- Inventory
account
An owner invests $1000 in the company. This transaction impacted the checking account and the owner's equity
account. In your journal entry, which account do you credit? - VERIFIED ANSWER✔✔-- Owner's equity
account
A sales manager purchases office supplies with the company credit card. This transaction impacts the accounts
payable and the office supplies accounts. In your journal entry, which account do you credit? - VERIFIED
ANSWER✔✔-- Accounts payable
The company pays off the credit card bill. This transaction impacts the accounts payable and the cash accounts. In
your journal entry, which account do you credit? - VERIFIED ANSWER✔✔-- Cash account
Debits are always represented on what side of a T-chart? - VERIFIED ANSWER✔✔-- The left.
Short-term Investments would be an example of what kind of account? - VERIFIED ANSWER✔✔-- An asset
account.
Accounts payable would be an example of what kind of account? - VERIFIED ANSWER✔✔-- A liability
account.
Accounts receivable would be an example of what kind of account? - VERIFIED ANSWER✔✔-- An asset
account.
True or False: Your client was paid in cash for a service that they provided. They've asked you to leave it off their
financial records. Since you are employed by the client, you should do what they ask. - VERIFIED
ANSWER✔✔-- False
A schedule that contains all accounts needed to prepare financial statements is known as: - VERIFIED
ANSWER✔✔-- The General Ledger
Reorganizing journal entries and grouping them by account is known as: - VERIFIED ANSWER✔✔-- Posting to
the ledger
A listing of the names of the accounts that a company has identified and made available for recording transactions
in its general ledger is known as a: - VERIFIED ANSWER✔✔-- Chart of Accounts
Exam Questions With Correct Answers
What are the 5 Account Types? - VERIFIED ANSWER✔✔-- Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? - VERIFIED ANSWER✔✔-Assets = Liabilities + Equity + Revenue - Expenses
What does DEA/LER stand for? - VERIFIED ANSWER✔✔-- Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
What are the 6 steps of the Accounting-Cycle? - VERIFIED ANSWER✔✔-- Collect and Analyze Transactions
- Record/Post transactions to the ledger
- Prepare and unadjusted trial balance
- Prepare adjusting entries at the end of the period
- Prepare an adjusted trial balance
- Prepare financial statements
What are the 4 Types of financial statements? - VERIFIED ANSWER✔✔-- The income statement
- The balance sheet
- The statement of equity
- The statement of cash flow
What are the 4 types of accounting adjustments? - VERIFIED ANSWER✔✔-- Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? - VERIFIED ANSWER✔✔-- Handle bank feeds and reconciles bank
accounts, managing accounts receivable/payable, and record financial transactions
Mary Smith is the owner and operator of Smith Construction. At the end of the company's accounting period,
December 31, 2020, Smith Construction has assets totaling $760,000 and liabilities totaling $240,000.
Use the accounting equation to calculate what Mary's Owner Equity would be as of December 31, 2020. -
VERIFIED ANSWER✔✔-- $520,000
Mike Anderson is the owner and operator of Anderson Consulting. At the end of 2019, the company's assets
totaled $500,000 and its liabilities totaled $175,000. Assuming that over the 2020 fiscal year, assets increased by
$120,000 and liabilities increased by $72,000, use the accounting equation to determine what Mike's Owner's
equity will be as of December 31, 2020? - VERIFIED ANSWER✔✔-- $373,000
Maria Garcia owns a software consulting firm. At the beginning of 2019, her firm had assets of $800,000 and
liabilities of $185,000. Assuming that assets decreased by $52,000 and liabilities increased by $24,000 during
2020, use the accounting equation to calculate equity at the end of 2020. - VERIFIED ANSWER✔✔-- $539,000
, The accounting equation can be defined as: - VERIFIED ANSWER✔✔-- Assets = Liability + Equity
What the company owns or controls and expects to gain value from is defined as: - VERIFIED ANSWER✔✔-- A
n Asset
What the company owes to others is defined as: - VERIFIED ANSWER✔✔-- Liabilities
The owner's stake in the company is defined as: - VERIFIED ANSWER✔✔-- Equity
A way of bookkeeping that tracks which accounts increase and which decrease for a given transaction is known
as: - VERIFIED ANSWER✔✔-- Double-entry Accounting
Which of the following best defines a credit as it's used in double-entry accounting? - VERIFIED ANSWER✔✔--
A decrease in assets/expenses and an increase in liabilities/owner's equity and revenue.
Which of the following best defines a debit as it's used in double-entry accounting? - VERIFIED ANSWER✔✔--
An increase in assets/expenses and a decrease in liabilities/owner's equity and revenue.
You purchased inventory from your vendor and paid cash. The accounts affected are the inventory account and
the cash account. In your journal entry, which account would you debit? - VERIFIED ANSWER✔✔-- Inventory
account
An owner invests $1000 in the company. This transaction impacted the checking account and the owner's equity
account. In your journal entry, which account do you credit? - VERIFIED ANSWER✔✔-- Owner's equity
account
A sales manager purchases office supplies with the company credit card. This transaction impacts the accounts
payable and the office supplies accounts. In your journal entry, which account do you credit? - VERIFIED
ANSWER✔✔-- Accounts payable
The company pays off the credit card bill. This transaction impacts the accounts payable and the cash accounts. In
your journal entry, which account do you credit? - VERIFIED ANSWER✔✔-- Cash account
Debits are always represented on what side of a T-chart? - VERIFIED ANSWER✔✔-- The left.
Short-term Investments would be an example of what kind of account? - VERIFIED ANSWER✔✔-- An asset
account.
Accounts payable would be an example of what kind of account? - VERIFIED ANSWER✔✔-- A liability
account.
Accounts receivable would be an example of what kind of account? - VERIFIED ANSWER✔✔-- An asset
account.
True or False: Your client was paid in cash for a service that they provided. They've asked you to leave it off their
financial records. Since you are employed by the client, you should do what they ask. - VERIFIED
ANSWER✔✔-- False
A schedule that contains all accounts needed to prepare financial statements is known as: - VERIFIED
ANSWER✔✔-- The General Ledger
Reorganizing journal entries and grouping them by account is known as: - VERIFIED ANSWER✔✔-- Posting to
the ledger
A listing of the names of the accounts that a company has identified and made available for recording transactions
in its general ledger is known as a: - VERIFIED ANSWER✔✔-- Chart of Accounts
