INTUIT BOOKKEEPING PROFESSIONAL
CERTIFICATE EXAM QUESTIONS WITH
DETAILED SOLUTIONS 2026
◉ 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: - L
iabilities
◉ 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: - D
ouble-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: - I
nventory account
◉ An owner invests $1000 in the company. This transaction
impacted the checking account and the owner's equity account. In
CERTIFICATE EXAM QUESTIONS WITH
DETAILED SOLUTIONS 2026
◉ 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: - L
iabilities
◉ 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: - D
ouble-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: - I
nventory account
◉ An owner invests $1000 in the company. This transaction
impacted the checking account and the owner's equity account. In
