INTUIT BOOKKEEPING EXAM LATEST UPDATE 2025/2026 UPDATE EXAM REVIEW| QUESTIONS
AND DETAILED ANSWERS| 100% CORRECT| GRADE A+ |100% PASS
What is the Accounting Cycle? - ANSWER A reliable process to make sure financial statements are
accurate and consistent. It begins with analyzing the accounting events of a business and ends with
producing financial reports for a given period.
What are the 6 steps to the Accounting Cycle? - ANSWER 1. Collect and analyze transactions
2. Record and post transactions
3. Prepare unadjusted trial balance
4. Prepare adjusting entries
5. Prepare adjusted trial balance
6. Prepare financial statements
What is the General Ledger? - ANSWER Summarizes all the financial transactions.
Contains all accounts and financial records.
What is depreciation? - ANSWER Spreads out the cost of an item over its useful life.
What are accrual entries? - ANSWER Records future payments or expenses to the current period.
What are the 4 types of financial statements? - ANSWER 1. Income statement
2. Balance sheet
3. Statement of equity
4. Statement of cash flows
What is the chart of accounts? - ANSWER a clients list of relevant business accounts for recording
transactions.
,What is an unadjusted trial balance? - ANSWER A form or statement that lists the titles and balances of
all ledger accounts at a given date before adjusting entries are made.
What is an ADJUSTED trial balance? - ANSWER A listing of the ending balances in all accounts after
adjusting entries have been prepared.
What is an income statement? - ANSWER Sows the business revenues and expenses for a specific period
(Also known as the Profit & Loss statement)
What is a balance sheet? - ANSWER Presents a snapshot of the business assets, liabilities, and equity at
a particular moment.
What is the statement of equity? - ANSWER Tracking the changes in the business equity, starting from
the opening balance to the ending balance for the period.
What is the statement of cash flow? - ANSWER Providing information about the sources and uses of
cash by the business, offering insights into cash inflows and outflows.
Four Key Elements of Bookkeeping Ethics - ANSWER Honesty, Objectivity, Confidentiality and
Professionalism
What is DEALER - ANSWER Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) +
Revenue
What's is the accounting Equation? - ANSWER Assets = Liabilities + Equity
Profit and Loss statement. Shows the company's revenues and expenses during a particular period -
ANSWER The Income Statement
A financial statement that reports a company's assets, liabilities, and equity at a specific point in time -
ANSWER The Balance Sheet
, Reports the changes in company equity, from the opening balance to the end of the period balance. -
ANSWER The Statement of Equity
Reports the sources and uses of cash by a business - ANSWER The Statement of Cash Flow
If customers pays at the time of sale you must enter it as a - ANSWER Sales Receipt
If customers does not pay at the time of sale you must enter it as a - ANSWER Invoice
Once and customer has paid an invoice it goes to - ANSWER Receive payment
Receive payment and sales receipt are followed by - ANSWER Bank deposit
Step 4 of The Accounting Cycle: Preparing adjusted entries includes - ANSWER Deferrals, Accruals,
Missing Transactions, and Tax Adjustments
Removing transactions that belong to a different period - ANSWER Deferral
Opposite of deferral. Concern future payments or expenses - ANSWER Accruals
The Business is a separate entity, so the activities of a business must be kept separate from any other
financial activities of its business owners - ANSWER Economic Entity Assumption
Only transactions that can be proven should be recorded in accounting practices. And what this means
is that businesses must be able to prove transactions through such things as receipts, billing statements,
invoices, and bank statements. - ANSWER Reliability Assumption
All info that is relative to the business and is important to a lender or investor has to be disclosed in
financial statements or in the notes of the statements - ANSWER Full Disclosure Principle
AND DETAILED ANSWERS| 100% CORRECT| GRADE A+ |100% PASS
What is the Accounting Cycle? - ANSWER A reliable process to make sure financial statements are
accurate and consistent. It begins with analyzing the accounting events of a business and ends with
producing financial reports for a given period.
What are the 6 steps to the Accounting Cycle? - ANSWER 1. Collect and analyze transactions
2. Record and post transactions
3. Prepare unadjusted trial balance
4. Prepare adjusting entries
5. Prepare adjusted trial balance
6. Prepare financial statements
What is the General Ledger? - ANSWER Summarizes all the financial transactions.
Contains all accounts and financial records.
What is depreciation? - ANSWER Spreads out the cost of an item over its useful life.
What are accrual entries? - ANSWER Records future payments or expenses to the current period.
What are the 4 types of financial statements? - ANSWER 1. Income statement
2. Balance sheet
3. Statement of equity
4. Statement of cash flows
What is the chart of accounts? - ANSWER a clients list of relevant business accounts for recording
transactions.
,What is an unadjusted trial balance? - ANSWER A form or statement that lists the titles and balances of
all ledger accounts at a given date before adjusting entries are made.
What is an ADJUSTED trial balance? - ANSWER A listing of the ending balances in all accounts after
adjusting entries have been prepared.
What is an income statement? - ANSWER Sows the business revenues and expenses for a specific period
(Also known as the Profit & Loss statement)
What is a balance sheet? - ANSWER Presents a snapshot of the business assets, liabilities, and equity at
a particular moment.
What is the statement of equity? - ANSWER Tracking the changes in the business equity, starting from
the opening balance to the ending balance for the period.
What is the statement of cash flow? - ANSWER Providing information about the sources and uses of
cash by the business, offering insights into cash inflows and outflows.
Four Key Elements of Bookkeeping Ethics - ANSWER Honesty, Objectivity, Confidentiality and
Professionalism
What is DEALER - ANSWER Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) +
Revenue
What's is the accounting Equation? - ANSWER Assets = Liabilities + Equity
Profit and Loss statement. Shows the company's revenues and expenses during a particular period -
ANSWER The Income Statement
A financial statement that reports a company's assets, liabilities, and equity at a specific point in time -
ANSWER The Balance Sheet
, Reports the changes in company equity, from the opening balance to the end of the period balance. -
ANSWER The Statement of Equity
Reports the sources and uses of cash by a business - ANSWER The Statement of Cash Flow
If customers pays at the time of sale you must enter it as a - ANSWER Sales Receipt
If customers does not pay at the time of sale you must enter it as a - ANSWER Invoice
Once and customer has paid an invoice it goes to - ANSWER Receive payment
Receive payment and sales receipt are followed by - ANSWER Bank deposit
Step 4 of The Accounting Cycle: Preparing adjusted entries includes - ANSWER Deferrals, Accruals,
Missing Transactions, and Tax Adjustments
Removing transactions that belong to a different period - ANSWER Deferral
Opposite of deferral. Concern future payments or expenses - ANSWER Accruals
The Business is a separate entity, so the activities of a business must be kept separate from any other
financial activities of its business owners - ANSWER Economic Entity Assumption
Only transactions that can be proven should be recorded in accounting practices. And what this means
is that businesses must be able to prove transactions through such things as receipts, billing statements,
invoices, and bank statements. - ANSWER Reliability Assumption
All info that is relative to the business and is important to a lender or investor has to be disclosed in
financial statements or in the notes of the statements - ANSWER Full Disclosure Principle
