INTUIT BOOKKEEPING CERTIFICATION TEST
2025
What is the cycle of bookkeeping? 1. Determine the transactions
2. Document Transactions
3. Execute Reports
4. Modifying Entries
5. Shut down the books
ANSWER: Economic Entity Principle A firm must maintain separate books
since it is a distinct entity from its owners and other businesses.
Assets = -ANSWER Debits rise as Credit falls
liabilities = -ANSWER: a rise in credits and a decline in debts
Equity is equal to -ANSWER (debits decreased and credits increased).
Income is equal to -ANSWER (debits decreased and credits increased).
expenditures = -ANSWER Credits fall and debits rise.
liabilities + equity + income = - ANSWER expenditures + assets
procedures for reconciliation - ANSWER 1. Keep a record of every transaction.
2. Get your bank statement.
3. Find the transactions and compare them to your books.
4. Examine any unreconciled goods or missing transactions.
5. deal with erroneous items and bank reconciliations
ANSWER for Cash Basis Accounting declaring earnings as soon as money is
received and outlays as soon as money is spent.
ANSWER reports money as it is earned and expenses as they are incurred in
Accrual Basis Accounting.
2025
What is the cycle of bookkeeping? 1. Determine the transactions
2. Document Transactions
3. Execute Reports
4. Modifying Entries
5. Shut down the books
ANSWER: Economic Entity Principle A firm must maintain separate books
since it is a distinct entity from its owners and other businesses.
Assets = -ANSWER Debits rise as Credit falls
liabilities = -ANSWER: a rise in credits and a decline in debts
Equity is equal to -ANSWER (debits decreased and credits increased).
Income is equal to -ANSWER (debits decreased and credits increased).
expenditures = -ANSWER Credits fall and debits rise.
liabilities + equity + income = - ANSWER expenditures + assets
procedures for reconciliation - ANSWER 1. Keep a record of every transaction.
2. Get your bank statement.
3. Find the transactions and compare them to your books.
4. Examine any unreconciled goods or missing transactions.
5. deal with erroneous items and bank reconciliations
ANSWER for Cash Basis Accounting declaring earnings as soon as money is
received and outlays as soon as money is spent.
ANSWER reports money as it is earned and expenses as they are incurred in
Accrual Basis Accounting.
