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BOOKKEEPING CLASS BY INTUIT
QUESTIONS WITH DETAILED VERIFIED
ANSWERS
Bookkeepers typically... Ans: Record financial transactions, reconcile
bank accounts, manage accounts receivable, manage accounts payable,
work with tax preparers and assist with tax compliance, and generate
financial statements.
As a bookkeeper what would Honesty mean? Ans: Reporting financial
data accordingly and timley, owning up to and trying ti fix any mistakes,
and being open and transparent with clients about their business.
As a bookkeeper what would Objectivity mean? Ans: Not taking any
jobs/ clients that could pose conflict of interest, not allowing outside
parties to influence findings, not letting personal bias get in the way of
your performance.
As a bookkeeper what would Confidentiality mean? Ans: Not discussing
business details outside of the job and NEVER using inside information for
personal gain.
As a bookkeeper what would Profesionalism mean? Ans: Being
considerate of clients needs/ time, avoiding personal/profesional activities
that could bring shame to profession/business, maintaining proper
credentials, and keeping skills through continuing education.
What is the Accounting Equation Ans: Assets=Liability+Equity
What are some examples of a Liability? Ans: Morgage,(money owed to a
lender)
Credit Card(s)- (money borrowed from bank with expectation of paying it
back)
Payroll or sales tax owed to a government-(most business will owe one or
more types of taxes to federal, state, or local governments)
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What are some examples of an Asset? Ans: Accounts Receivable-(money
owed to the business by customers)
Investments in other companies-( potentially sell for cash)
What are some examples of Equity? Ans: Money invested into the
company by one or more owners
Double-Entry Accounting Ans: A common way to record transactions
records which accounts increase and decrease. Recorded in debit and
credit columns. (Totals HAVE to be balanced)
What side can debits and credits be found on? Ans: Debits are on the
left
Credits are on the right
How do you know if something is a Debit or a Credit? Ans: Ask yourself,
What kind of account are we looking at? and Is the balance increasing or
decreasing?
What are the 5 account types? Ans: Assets
Liability
Equity
Revenue
Expenses
What is the expanded Accounting Equation? Ans:
{Assets=Liabilities+Equity}+[Revenues-Expences]
{Balance Sheet} [Income statement]
{Assets+Expenses}=[Liabilities+Equity+Revenue]
How do Debits and Credits work in an ASSETS Account? Ans: Debits are
an increase and Credits are a decrease
BOOKKEEPING CLASS BY INTUIT
QUESTIONS WITH DETAILED VERIFIED
ANSWERS
Bookkeepers typically... Ans: Record financial transactions, reconcile
bank accounts, manage accounts receivable, manage accounts payable,
work with tax preparers and assist with tax compliance, and generate
financial statements.
As a bookkeeper what would Honesty mean? Ans: Reporting financial
data accordingly and timley, owning up to and trying ti fix any mistakes,
and being open and transparent with clients about their business.
As a bookkeeper what would Objectivity mean? Ans: Not taking any
jobs/ clients that could pose conflict of interest, not allowing outside
parties to influence findings, not letting personal bias get in the way of
your performance.
As a bookkeeper what would Confidentiality mean? Ans: Not discussing
business details outside of the job and NEVER using inside information for
personal gain.
As a bookkeeper what would Profesionalism mean? Ans: Being
considerate of clients needs/ time, avoiding personal/profesional activities
that could bring shame to profession/business, maintaining proper
credentials, and keeping skills through continuing education.
What is the Accounting Equation Ans: Assets=Liability+Equity
What are some examples of a Liability? Ans: Morgage,(money owed to a
lender)
Credit Card(s)- (money borrowed from bank with expectation of paying it
back)
Payroll or sales tax owed to a government-(most business will owe one or
more types of taxes to federal, state, or local governments)
, Page | 2
What are some examples of an Asset? Ans: Accounts Receivable-(money
owed to the business by customers)
Investments in other companies-( potentially sell for cash)
What are some examples of Equity? Ans: Money invested into the
company by one or more owners
Double-Entry Accounting Ans: A common way to record transactions
records which accounts increase and decrease. Recorded in debit and
credit columns. (Totals HAVE to be balanced)
What side can debits and credits be found on? Ans: Debits are on the
left
Credits are on the right
How do you know if something is a Debit or a Credit? Ans: Ask yourself,
What kind of account are we looking at? and Is the balance increasing or
decreasing?
What are the 5 account types? Ans: Assets
Liability
Equity
Revenue
Expenses
What is the expanded Accounting Equation? Ans:
{Assets=Liabilities+Equity}+[Revenues-Expences]
{Balance Sheet} [Income statement]
{Assets+Expenses}=[Liabilities+Equity+Revenue]
How do Debits and Credits work in an ASSETS Account? Ans: Debits are
an increase and Credits are a decrease
