INTUIT ACADEMY BOOKKEEPING
GLOSSARY EXAM 2025/2026 QUESTIONS
AND ANSWERS 100% PASS
Things that are considered Liabilities( credit) + Equity( credit) - ANS Account payable, Notes
payable, Accrued expenses, Long-term debt, Shareholder's Equity
Account reconciliation - ANS Compare two sets of records at the end of a particular
accounting period . Verify that account balances are correct, identify discrepancies, and make
adjustments to the account as required in order to record the correct values in the books .
Accountant - ANS An accountant keeps track of business transactions and financial records
to issue financial statements and determine how a business is doing on a financial level .
Accounts payable - ANS Money a business owes to others for goods or services
Accounts payable reconciliation - ANS Compare statements or invoices provided by vendors
to the accounts payable in the books . Verify there are no discrepancies in the amount a vendor
is charging for the goods or services received, and the amount recorded in the books matches
the amount charged by the vendor
Accounts receivable - ANS Money that is owed to a business for providing a good or service
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,Accounts receivable aging report - ANS Accounts receivable aging is a periodic report that
categorizes a business's accounts receivable according to the length of time an invoice has been
outstanding . It is used as a gauge to determine the financial health and reliability of a
business's customers
Accounts receivable doubtful - ANS An allowance for doubtful accounts is considered a
"contra asset," because it reduces the amount of an asset, in this case the accounts receivable .
The allowance, sometimes called a bad debt reserve, represents management's estimate of the
amount of accounts receivable that will not be paid by customers
Accounts receivable reconciliation - ANS Compare the outstanding customer invoices and
balances to the accounts receivable as entered in the general ledger . Verify amounts, uncover
errors and irregularities, and identify fraudulent activity
Accounts uncollectible - ANS Accounts uncollectible are receivables, loans, or other debt that
will not be paid by a debtor .
Accrual - ANS An entry to record a future revenue or expense in the current period, even if
money hasn't been paid or received yet
Accrual accounting - ANS Revenues and expenses are reported or recognized on financial
reports when they are earned or incurred, rather than when the payment is made or received
Accumulated depreciation - ANS Accumulated depreciation is the total amount of
depreciation expense that has been allocated for an asset since the asset was put into use
Adjusted trial balance - ANS Listing of the ending balances in all accounts after adjusting
entries have been prepared
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Adjusting entries - ANS Creating new entries to record depreciation and accrual adjustments;
these are provided to bookkeepers by a CPA or accountant
Amortization - ANS The structure process of paying both the principal and interest over a
period of time
Assets - ANS Anything the business owns of value or a resource of value that has the
potential to be transformed into cash
Average cost method (AVCO) - ANS Inventory value is based on the average cost of all
materials purchased during the reporting period
Bad debt - ANS Bad debt is the term used for any loans or outstanding balances that a
business deems uncollectible . For businesses that provide loans and credit to customers, bad
debt is normal and expected .
Bad debt expenses - ANS A bad debt expense is recognized when a receivable is no longer
collectible because a customer is unable to fulfill their obligation to pay an outstanding debt
due to bankruptcy or other financial problems . Companies that extend credit to their
customers report bad debts as an allowance for doubtful accounts on the balance sheet, which
is also known as a provision for credit losses .
Balance sheet - ANS The balance sheet is a financial statement that reports a business's
assets, liabilities, and equity at a specific point in time .
Balances (account balances) - ANS A total amount in an account at any given time .
Bank deposit receipt (slip) - ANS A bank form used to document the money the customer
intends to deposit into their bank account .
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
GLOSSARY EXAM 2025/2026 QUESTIONS
AND ANSWERS 100% PASS
Things that are considered Liabilities( credit) + Equity( credit) - ANS Account payable, Notes
payable, Accrued expenses, Long-term debt, Shareholder's Equity
Account reconciliation - ANS Compare two sets of records at the end of a particular
accounting period . Verify that account balances are correct, identify discrepancies, and make
adjustments to the account as required in order to record the correct values in the books .
Accountant - ANS An accountant keeps track of business transactions and financial records
to issue financial statements and determine how a business is doing on a financial level .
Accounts payable - ANS Money a business owes to others for goods or services
Accounts payable reconciliation - ANS Compare statements or invoices provided by vendors
to the accounts payable in the books . Verify there are no discrepancies in the amount a vendor
is charging for the goods or services received, and the amount recorded in the books matches
the amount charged by the vendor
Accounts receivable - ANS Money that is owed to a business for providing a good or service
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,Accounts receivable aging report - ANS Accounts receivable aging is a periodic report that
categorizes a business's accounts receivable according to the length of time an invoice has been
outstanding . It is used as a gauge to determine the financial health and reliability of a
business's customers
Accounts receivable doubtful - ANS An allowance for doubtful accounts is considered a
"contra asset," because it reduces the amount of an asset, in this case the accounts receivable .
The allowance, sometimes called a bad debt reserve, represents management's estimate of the
amount of accounts receivable that will not be paid by customers
Accounts receivable reconciliation - ANS Compare the outstanding customer invoices and
balances to the accounts receivable as entered in the general ledger . Verify amounts, uncover
errors and irregularities, and identify fraudulent activity
Accounts uncollectible - ANS Accounts uncollectible are receivables, loans, or other debt that
will not be paid by a debtor .
Accrual - ANS An entry to record a future revenue or expense in the current period, even if
money hasn't been paid or received yet
Accrual accounting - ANS Revenues and expenses are reported or recognized on financial
reports when they are earned or incurred, rather than when the payment is made or received
Accumulated depreciation - ANS Accumulated depreciation is the total amount of
depreciation expense that has been allocated for an asset since the asset was put into use
Adjusted trial balance - ANS Listing of the ending balances in all accounts after adjusting
entries have been prepared
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Adjusting entries - ANS Creating new entries to record depreciation and accrual adjustments;
these are provided to bookkeepers by a CPA or accountant
Amortization - ANS The structure process of paying both the principal and interest over a
period of time
Assets - ANS Anything the business owns of value or a resource of value that has the
potential to be transformed into cash
Average cost method (AVCO) - ANS Inventory value is based on the average cost of all
materials purchased during the reporting period
Bad debt - ANS Bad debt is the term used for any loans or outstanding balances that a
business deems uncollectible . For businesses that provide loans and credit to customers, bad
debt is normal and expected .
Bad debt expenses - ANS A bad debt expense is recognized when a receivable is no longer
collectible because a customer is unable to fulfill their obligation to pay an outstanding debt
due to bankruptcy or other financial problems . Companies that extend credit to their
customers report bad debts as an allowance for doubtful accounts on the balance sheet, which
is also known as a provision for credit losses .
Balance sheet - ANS The balance sheet is a financial statement that reports a business's
assets, liabilities, and equity at a specific point in time .
Balances (account balances) - ANS A total amount in an account at any given time .
Bank deposit receipt (slip) - ANS A bank form used to document the money the customer
intends to deposit into their bank account .
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
