Intuit Bookkeeping Exam –
Comprehensive Actual Exam Review with
Expert Strategies, Key Quizzes &
Practice Questions | Guaranteed Success,
Newest 2025/2026
Question 1
What are the four key elements of bookkeeping ethics?
Answer: Honesty, Objectivity, Confidentiality, Professionalism
Rationale: Bookkeepers must maintain integrity (honesty), impartiality (objectivity), protect
client data (confidentiality), and adhere to professional standards.
Question 2
What does the acronym DEALER represent in bookkeeping?
Answer: Dividends + Expenses + Assets = Liabilities + Owner’s Equity (beginning) + Revenue
Rationale: DEALER is a mnemonic for the accounting equation, highlighting accounts that
increase with debits (Dividends, Expenses, Assets) and credits (Liabilities, Equity, Revenue).
Question 3
What is the accounting equation?
Answer: Assets = Liabilities + Equity
Rationale: The fundamental accounting equation ensures balance in financial records, forming
the basis for double-entry bookkeeping.
Question 4
What does a profit and loss statement show?
Answer: Company’s revenues and expenses during a period
Rationale: Also known as the income statement, it tracks financial performance over time.
,Question 5
What financial statement reports assets, liabilities, and equity at a specific point?
Answer: Balance Sheet
Rationale: The balance sheet provides a snapshot of a company’s financial position at a given
moment.
Question 6
What statement shows changes in company equity from opening to closing balance?
Answer: Statement of Equity
Rationale: The statement of equity details changes in owner’s equity, including contributions
and distributions.
Question 7
What statement reports the sources and uses of cash?
Answer: Statement of Cash Flows
Rationale: This statement tracks cash inflows and outflows from operating, investing, and
financing activities.
Question 8
What are the steps of the accounting cycle?
Answer: 1. Analyze and record transactions, 2. Post to ledger, 3. Prepare unadjusted trial
balance, 4. Prepare adjusted entries, 5. Prepare adjusted trial balance, 6. Prepare financial
statements
Rationale: The accounting cycle ensures accurate financial reporting through systematic steps.
Question 9
How is a customer payment recorded at the time of sale in QuickBooks?
Answer: Sales Receipt
Rationale: A sales receipt is used when payment is received immediately in QuickBooks.
Question 10
How is a sale recorded when payment is not received at the time of sale?
Answer: Invoice
Rationale: An invoice records a sale on credit, expecting future payment.
, Question 11
What is recorded in QuickBooks after a customer pays an invoice?
Answer: Receive Payment
Rationale: The “Receive Payment” function logs customer payments against invoices in
QuickBooks.
Question 12
What follows a sales receipt or receive payment in QuickBooks?
Answer: Bank Deposit
Rationale: Payments are consolidated into a bank deposit for accurate cash flow tracking.
Question 13
What does step 4 of the accounting cycle (preparing adjusted entries) include?
Answer: Deferrals, Accruals, Missing Transactions, Tax Adjustments
Rationale: Adjusted entries correct timing issues and ensure accurate financial statements.
Question 14
What does removing transactions that belong to a different period refer to?
Answer: Deferral
Rationale: Deferrals postpone recognition of revenue or expenses to the appropriate period.
Question 15
What is the opposite of deferral, concerning future payments or expenses?
Answer: Accrual
Rationale: Accruals recognize revenue or expenses before cash changes hands.
Question 16
What assumption states that a business is a separate entity from its owners’ activities?
Answer: Economic Entity Assumption
Rationale: This principle ensures business transactions are recorded separately from personal
ones.
Question 17
What assumption requires transactions to be provable with receipts or statements?
Comprehensive Actual Exam Review with
Expert Strategies, Key Quizzes &
Practice Questions | Guaranteed Success,
Newest 2025/2026
Question 1
What are the four key elements of bookkeeping ethics?
Answer: Honesty, Objectivity, Confidentiality, Professionalism
Rationale: Bookkeepers must maintain integrity (honesty), impartiality (objectivity), protect
client data (confidentiality), and adhere to professional standards.
Question 2
What does the acronym DEALER represent in bookkeeping?
Answer: Dividends + Expenses + Assets = Liabilities + Owner’s Equity (beginning) + Revenue
Rationale: DEALER is a mnemonic for the accounting equation, highlighting accounts that
increase with debits (Dividends, Expenses, Assets) and credits (Liabilities, Equity, Revenue).
Question 3
What is the accounting equation?
Answer: Assets = Liabilities + Equity
Rationale: The fundamental accounting equation ensures balance in financial records, forming
the basis for double-entry bookkeeping.
Question 4
What does a profit and loss statement show?
Answer: Company’s revenues and expenses during a period
Rationale: Also known as the income statement, it tracks financial performance over time.
,Question 5
What financial statement reports assets, liabilities, and equity at a specific point?
Answer: Balance Sheet
Rationale: The balance sheet provides a snapshot of a company’s financial position at a given
moment.
Question 6
What statement shows changes in company equity from opening to closing balance?
Answer: Statement of Equity
Rationale: The statement of equity details changes in owner’s equity, including contributions
and distributions.
Question 7
What statement reports the sources and uses of cash?
Answer: Statement of Cash Flows
Rationale: This statement tracks cash inflows and outflows from operating, investing, and
financing activities.
Question 8
What are the steps of the accounting cycle?
Answer: 1. Analyze and record transactions, 2. Post to ledger, 3. Prepare unadjusted trial
balance, 4. Prepare adjusted entries, 5. Prepare adjusted trial balance, 6. Prepare financial
statements
Rationale: The accounting cycle ensures accurate financial reporting through systematic steps.
Question 9
How is a customer payment recorded at the time of sale in QuickBooks?
Answer: Sales Receipt
Rationale: A sales receipt is used when payment is received immediately in QuickBooks.
Question 10
How is a sale recorded when payment is not received at the time of sale?
Answer: Invoice
Rationale: An invoice records a sale on credit, expecting future payment.
, Question 11
What is recorded in QuickBooks after a customer pays an invoice?
Answer: Receive Payment
Rationale: The “Receive Payment” function logs customer payments against invoices in
QuickBooks.
Question 12
What follows a sales receipt or receive payment in QuickBooks?
Answer: Bank Deposit
Rationale: Payments are consolidated into a bank deposit for accurate cash flow tracking.
Question 13
What does step 4 of the accounting cycle (preparing adjusted entries) include?
Answer: Deferrals, Accruals, Missing Transactions, Tax Adjustments
Rationale: Adjusted entries correct timing issues and ensure accurate financial statements.
Question 14
What does removing transactions that belong to a different period refer to?
Answer: Deferral
Rationale: Deferrals postpone recognition of revenue or expenses to the appropriate period.
Question 15
What is the opposite of deferral, concerning future payments or expenses?
Answer: Accrual
Rationale: Accruals recognize revenue or expenses before cash changes hands.
Question 16
What assumption states that a business is a separate entity from its owners’ activities?
Answer: Economic Entity Assumption
Rationale: This principle ensures business transactions are recorded separately from personal
ones.
Question 17
What assumption requires transactions to be provable with receipts or statements?
