Part 1 Practice Test for Intuit Bookkeeping Professional Certificate Test Questions and Correct Answers.

What event would most likely cause an auditor to issue a negative ongoing concern opinion for a company? - Answer the company has a high debt to equity ratio and it facing liquidity problems what is the main purpose of the adjusting process in accounting - Answer to correct error and misstatements in final statements that can result from inaccurate records or faulty assumptions. to record transactions that have not been entered in the accounting records during the accounting period to record changes of a business that occur as a result of time or business activity which statements are true about the balance sheet - Answer it displays what the business owns and what the business owes as of a single day. it should be monitored on a regular basis since it's integral to maintaining the health of the business it is used to track all assets, liabilities, and equity of a business it is final statement that reports assets, liabilities, and equity for specific time asset - Answer a resource with economic value that a business owns or controls you're a bookkeeper for a small law firm that provides legal services to clients on a monthly retainer basis. you use accrual accounting to record the final transactions of the firm in june, you billed 10 clients for a total of $20,000, but only 8 of them paid you by june 30th the other 2 clients paid $2,000 each on july 10. you also incurred $5,000 in expenses for rent, utilities, and supplies in june, which you paid june 30. now would you report your revenue and expenses for june under the matching principle? - Answer revenue = $20,000 expenses = $5,000 bookkeeper notices there is increase in Accounts Payable (liability account) from recording a utility bill. what is impact on accounting equation? - Answer decrease owners equity