INTUIT BOOKKEEPING PROFESSIONAL
CERTIFICATE Real Exam TEST PAPER
2025/2026 QUESTIONS AND SOLUTIONS
MARKED A+
What are the 5 Account Types? - ,,,answer,,,..- Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? - ,,,answer,,,..Assets = Liabilities +
Equity
What does DEA/LER stand for? - ,,,answer,,,..- Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
What are the 5 steps of the Accounting-Cycle? - ,,,answer,,,..1. Identify
transactions
2. record transactions
3. run reports
,4. adjusting entries
5. close the books
What are the 4 Types of financial statements? - ,,,answer,,,..- The income
statement (aka P&L statement: Income, COGS, expenses)
- The balance sheet (assets, liabilities, equity)
- The statement of equity
- The statement of cash flow
What are the 4 types of accounting adjustments? - ,,,answer,,,..-
Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? - ,,,answer,,,..- Handle bank feeds
and reconciles bank accounts, managing accounts receivable/payable,
and record financial transactions
Mary Smith is the owner and operator of Smith Construction. At the end of
the company's accounting period, December 31, 2020, Smith
Construction has assets totaling $760,000 and liabilities totaling
$240,000.
Use the accounting equation to calculate what Mary's Owner Equity would
be as of December 31, 2020. - ,,,answer,,,..- $520,000
Mike Anderson is the owner and operator of Anderson Consulting. At the
end of 2019, the company's assets totaled $500,000 and its liabilities
totaled $175,000. Assuming that over the 2020 fiscal year, assets
increased by $120,000 and liabilities increased by $72,000, use the
accounting equation to determine what Mike's Owner's equity will be as of
December 31, 2020? - ,,,answer,,,..- $373,000
,Maria Garcia owns a software consulting firm. At the beginning of 2019,
her firm had assets of $800,000 and liabilities of $185,000. Assuming that
assets decreased by $52,000 and liabilities increased by $24,000 during
2020, use the accounting equation to calculate equity at the end of 2020.
- ,,,answer,,,..- $539,000
The accounting equation can be defined as: - ,,,answer,,,..- Assets =
Liability + Equity
What the company owns or controls and expects to gain value from is
defined as: - ,,,answer,,,..- An Asset
What the company owes to others is defined as: - ,,,answer,,,..- Liabilities
The owner's stake in the company is defined as: - ,,,answer,,,..- Equity
A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as: - ,,,answer,,,..- Double-entry
Accounting
Which of the following best defines a credit as it's used in double-entry
accounting? - ,,,answer,,,..- A decrease in assets/expenses and an
increase in liabilities/owner's equity and revenue.
Which of the following best defines a debit as it's used in double-entry
accounting? - ,,,answer,,,..- An increase in assets/expenses and a
decrease in liabilities/owner's equity and revenue.
You purchased inventory from your vendor and paid cash. The accounts
affected are the inventory account and the cash account. In your journal
entry, which account would you debit? - ,,,answer,,,..- Inventory account
, An owner invests $1000 in the company. This transaction impacted the
checking account and the owner's equity account. In your journal entry,
which account do you credit? - ,,,answer,,,..- Owner's equity account
A sales manager purchases office supplies with the company credit card.
This transaction impacts the accounts payable and the office supplies
accounts. In your journal entry, which account do you credit? -
,,,answer,,,..- Accounts payable
The company pays off the credit card bill. This transaction impacts the
accounts payable and the cash accounts. In your journal entry, which
account do you credit? - ,,,answer,,,..- Cash account
Debits are always represented on what side of a T-chart? - ,,,answer,,,..- T
he left.
Short-term Investments would be an example of what kind of account? -
,,,answer,,,..- An asset account.
Accounts payable would be an example of what kind of account? -
,,,answer,,,..- A liability account.
Accounts receivable would be an example of what kind of account? -
,,,answer,,,..- An asset account.
True or False: Your client was paid in cash for a service that they provided.
They've asked you to leave it off their financial records. Since you are
employed by the client, you should do what they ask. - ,,,answer,,,..- False
A schedule that contains all accounts needed to prepare financial
statements is known as: - ,,,answer,,,..- The General Ledger
CERTIFICATE Real Exam TEST PAPER
2025/2026 QUESTIONS AND SOLUTIONS
MARKED A+
What are the 5 Account Types? - ,,,answer,,,..- Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? - ,,,answer,,,..Assets = Liabilities +
Equity
What does DEA/LER stand for? - ,,,answer,,,..- Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
What are the 5 steps of the Accounting-Cycle? - ,,,answer,,,..1. Identify
transactions
2. record transactions
3. run reports
,4. adjusting entries
5. close the books
What are the 4 Types of financial statements? - ,,,answer,,,..- The income
statement (aka P&L statement: Income, COGS, expenses)
- The balance sheet (assets, liabilities, equity)
- The statement of equity
- The statement of cash flow
What are the 4 types of accounting adjustments? - ,,,answer,,,..-
Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? - ,,,answer,,,..- Handle bank feeds
and reconciles bank accounts, managing accounts receivable/payable,
and record financial transactions
Mary Smith is the owner and operator of Smith Construction. At the end of
the company's accounting period, December 31, 2020, Smith
Construction has assets totaling $760,000 and liabilities totaling
$240,000.
Use the accounting equation to calculate what Mary's Owner Equity would
be as of December 31, 2020. - ,,,answer,,,..- $520,000
Mike Anderson is the owner and operator of Anderson Consulting. At the
end of 2019, the company's assets totaled $500,000 and its liabilities
totaled $175,000. Assuming that over the 2020 fiscal year, assets
increased by $120,000 and liabilities increased by $72,000, use the
accounting equation to determine what Mike's Owner's equity will be as of
December 31, 2020? - ,,,answer,,,..- $373,000
,Maria Garcia owns a software consulting firm. At the beginning of 2019,
her firm had assets of $800,000 and liabilities of $185,000. Assuming that
assets decreased by $52,000 and liabilities increased by $24,000 during
2020, use the accounting equation to calculate equity at the end of 2020.
- ,,,answer,,,..- $539,000
The accounting equation can be defined as: - ,,,answer,,,..- Assets =
Liability + Equity
What the company owns or controls and expects to gain value from is
defined as: - ,,,answer,,,..- An Asset
What the company owes to others is defined as: - ,,,answer,,,..- Liabilities
The owner's stake in the company is defined as: - ,,,answer,,,..- Equity
A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as: - ,,,answer,,,..- Double-entry
Accounting
Which of the following best defines a credit as it's used in double-entry
accounting? - ,,,answer,,,..- A decrease in assets/expenses and an
increase in liabilities/owner's equity and revenue.
Which of the following best defines a debit as it's used in double-entry
accounting? - ,,,answer,,,..- An increase in assets/expenses and a
decrease in liabilities/owner's equity and revenue.
You purchased inventory from your vendor and paid cash. The accounts
affected are the inventory account and the cash account. In your journal
entry, which account would you debit? - ,,,answer,,,..- Inventory account
, An owner invests $1000 in the company. This transaction impacted the
checking account and the owner's equity account. In your journal entry,
which account do you credit? - ,,,answer,,,..- Owner's equity account
A sales manager purchases office supplies with the company credit card.
This transaction impacts the accounts payable and the office supplies
accounts. In your journal entry, which account do you credit? -
,,,answer,,,..- Accounts payable
The company pays off the credit card bill. This transaction impacts the
accounts payable and the cash accounts. In your journal entry, which
account do you credit? - ,,,answer,,,..- Cash account
Debits are always represented on what side of a T-chart? - ,,,answer,,,..- T
he left.
Short-term Investments would be an example of what kind of account? -
,,,answer,,,..- An asset account.
Accounts payable would be an example of what kind of account? -
,,,answer,,,..- A liability account.
Accounts receivable would be an example of what kind of account? -
,,,answer,,,..- An asset account.
True or False: Your client was paid in cash for a service that they provided.
They've asked you to leave it off their financial records. Since you are
employed by the client, you should do what they ask. - ,,,answer,,,..- False
A schedule that contains all accounts needed to prepare financial
statements is known as: - ,,,answer,,,..- The General Ledger
