INTUIT ACADEMY BOOKKEEPING GLOSSARY
CERTIFICATION EXAM ACTUAL QUESTIONS
WITH 100% VERIFIED ANSWERS AND
COMPLETE SOLUTIONS
◍ Credit sales. Answer: A decrease in assets or expenses or an increase
in liabilities, owner's equity or revenue
◍ Credits. Answer: A monetary instrument directing the financial
institution to pay the bearer a specified sum of money
◍ Current assets. Answer: Assets that can be converted into cash quickly
(within a year)
◍ Current liabilities. Answer: Debt obligations that come due within one
year
◍ Data entry error. Answer: The amount was written incorrectly or
under the incorrect account
◍ Debits. Answer: An increase in assets or expenses or a decrease in
liabilities, owner's equity, or revenue
,◍ Dedicated accounting software. Answer: Specialized computer
programs designed specifically for managing and recording financial
transactions, generating financial statements, and performing various
accounting tasks
◍ Deferral. Answer: An entry to record a current payment or expense at
a later period when the money has actually been earned or incurred
◍ Deferred revenue (unearned revenue). Answer: Revenue that is paid
to the business for work not yet performed, recorded in books as liability
◍ Depreciation. Answer: Spreading out the cost of an item over the
expected life of the item
◍ Depreciation expense. Answer: The cost of an asset that has been
depreciated for a single period; It shows how much of the asset's value
has been used up in that year
◍ Discrepancy. Answer: An inconsistency between the books and
supporting documentation
◍ Disposition. Answer: When the business removes, sells, or disposes of
an asset
, ◍ Dividend. Answer: What a business pays out to shareholders from
business earnings
◍ Double-entry accounting. Answer: A method of bookkeeping that uses
at least 2 entries, a debit and a credit, for every transaction
◍ Draw. Answer: When an owner takes funds from their business
holdings for individual use
◍ Efficiency. Answer: How effectively a business is doing something
over a given period of time
◍ Employee. Answer: Someone who may be eligible for benefits (such
as medical), and the business is responsible for collecting and paying
income taxes on them
◍ Employee vacation payable. Answer: A place to store wages for
salaries dispersed when an employee is using paid time off/vacation pay
◍ Equity. Answer: Owner's stake in the business, how much they have
invested or withdrawn
◍ Error of commission. Answer: A type of data entry error where the
bookkeeping entry was made to the correct type of account but the
CERTIFICATION EXAM ACTUAL QUESTIONS
WITH 100% VERIFIED ANSWERS AND
COMPLETE SOLUTIONS
◍ Credit sales. Answer: A decrease in assets or expenses or an increase
in liabilities, owner's equity or revenue
◍ Credits. Answer: A monetary instrument directing the financial
institution to pay the bearer a specified sum of money
◍ Current assets. Answer: Assets that can be converted into cash quickly
(within a year)
◍ Current liabilities. Answer: Debt obligations that come due within one
year
◍ Data entry error. Answer: The amount was written incorrectly or
under the incorrect account
◍ Debits. Answer: An increase in assets or expenses or a decrease in
liabilities, owner's equity, or revenue
,◍ Dedicated accounting software. Answer: Specialized computer
programs designed specifically for managing and recording financial
transactions, generating financial statements, and performing various
accounting tasks
◍ Deferral. Answer: An entry to record a current payment or expense at
a later period when the money has actually been earned or incurred
◍ Deferred revenue (unearned revenue). Answer: Revenue that is paid
to the business for work not yet performed, recorded in books as liability
◍ Depreciation. Answer: Spreading out the cost of an item over the
expected life of the item
◍ Depreciation expense. Answer: The cost of an asset that has been
depreciated for a single period; It shows how much of the asset's value
has been used up in that year
◍ Discrepancy. Answer: An inconsistency between the books and
supporting documentation
◍ Disposition. Answer: When the business removes, sells, or disposes of
an asset
, ◍ Dividend. Answer: What a business pays out to shareholders from
business earnings
◍ Double-entry accounting. Answer: A method of bookkeeping that uses
at least 2 entries, a debit and a credit, for every transaction
◍ Draw. Answer: When an owner takes funds from their business
holdings for individual use
◍ Efficiency. Answer: How effectively a business is doing something
over a given period of time
◍ Employee. Answer: Someone who may be eligible for benefits (such
as medical), and the business is responsible for collecting and paying
income taxes on them
◍ Employee vacation payable. Answer: A place to store wages for
salaries dispersed when an employee is using paid time off/vacation pay
◍ Equity. Answer: Owner's stake in the business, how much they have
invested or withdrawn
◍ Error of commission. Answer: A type of data entry error where the
bookkeeping entry was made to the correct type of account but the
