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INTUIT CERTIFIED PROFESSIONAL
BOOKKEEPING EXAM PRACTICE
QUESTIONS WITH DETAILED VERIFIED
ANSWERS
Cash Basis Ans: Records expenses when payment is made.
Accrual Basis Ans: Records expenses when they occur.
Accounting Equation Ans: Assets = Liabilities + Equity.
Net Income Formula Ans: Income - COGS - Expenses = Net Income.
Adjusting Journal Entries Ans: Account for unrealized income and
expenses.
Normal Debit Balance Ans: Assets and Expenses have a normal debit
balance.
Revenue Recognition Principle Ans: Recognize revenue when service is
provided.
Double-Entry Accounting Ans: Requires equal debit and credit amounts.
Payroll Register Ans: Records payroll transactions for employees.
Employee Earnings Record Ans: Lists wages and withholdings for each
employee.
W-4 Form Ans: Employee's tax withholding information form.
Liability Ans: Obligation to pay debts or obligations.
Asset Ans: Resource owned by the business.
Expense Ans: Cost incurred in generating revenue.
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Revenue Ans: Income generated from normal business operations.
Equity Ans: Owner's residual interest in assets.
Cost of Goods Sold (COGS) Ans: Direct costs of producing goods sold.
Depreciation Ans: Allocation of asset cost over time.
Amortization Ans: Gradual write-off of intangible asset costs.
Payroll Accounting Sheet Ans: Tracks payroll details for each pay period.
Embezzlement Prevention Ans: Double-entry systems help reduce fraud
risk.
Financial Statement Balance Ans: Ensures accounting equations are
maintained.
Invoice Ans: Request for payment for services rendered.
W-4 Form Ans: Employee form for Federal tax withholding.
Adjusting Process Ans: Verifying and recording entries at period end.
Ethical Responsibilities Ans: Obligations to maintain client confidentiality
and accuracy.
Net Pay Ans: Amount after all deductions from gross pay.
Owner's Contribution Ans: Equity account for owner's personal funds
invested.
Asset Ans: Resource owned by a business with future benefits.
Confidentiality Ans: Keeping client financial information private.
Revenue Recognition Ans: Recording income when earned, not received.
Banking Account Ans: Account used for business transactions and
deposits.
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Loan Ans: Borrowed funds to be repaid with interest.
Inventory Liquidation Ans: Selling off stock to cover expenses.
Owner's Investment Ans: Funds contributed by the owner to the
business.
Journal Entries Ans: Records of financial transactions in accounting.
Deductions Ans: Amounts subtracted from gross pay for taxes.
Financial Statements Ans: Reports summarizing financial performance
and position.
Ethical Bookkeeping Ans: Practices ensuring accuracy and legality in
records.
Transaction Recording Ans: Documenting financial transactions
accurately and timely.
Deposit Slip Ans: Document showing funds deposited into a bank
account.
Credit Card Payable Ans: Liability for amounts owed on credit cards.
Gross Pay Ans: Total earnings before any deductions.
Confidential Information Ans: Sensitive data that must be protected.
Non-Disclosure Agreement Ans: Contract preventing sharing of
confidential information.
Owner's Contribution Ans: Investment made by the owner into the
business.
Assets Ans: Resources owned by a business with value.
Liabilities Ans: Obligations or debts owed by a business.
Equity Ans: Owner's residual interest in the business.
INTUIT CERTIFIED PROFESSIONAL
BOOKKEEPING EXAM PRACTICE
QUESTIONS WITH DETAILED VERIFIED
ANSWERS
Cash Basis Ans: Records expenses when payment is made.
Accrual Basis Ans: Records expenses when they occur.
Accounting Equation Ans: Assets = Liabilities + Equity.
Net Income Formula Ans: Income - COGS - Expenses = Net Income.
Adjusting Journal Entries Ans: Account for unrealized income and
expenses.
Normal Debit Balance Ans: Assets and Expenses have a normal debit
balance.
Revenue Recognition Principle Ans: Recognize revenue when service is
provided.
Double-Entry Accounting Ans: Requires equal debit and credit amounts.
Payroll Register Ans: Records payroll transactions for employees.
Employee Earnings Record Ans: Lists wages and withholdings for each
employee.
W-4 Form Ans: Employee's tax withholding information form.
Liability Ans: Obligation to pay debts or obligations.
Asset Ans: Resource owned by the business.
Expense Ans: Cost incurred in generating revenue.
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Revenue Ans: Income generated from normal business operations.
Equity Ans: Owner's residual interest in assets.
Cost of Goods Sold (COGS) Ans: Direct costs of producing goods sold.
Depreciation Ans: Allocation of asset cost over time.
Amortization Ans: Gradual write-off of intangible asset costs.
Payroll Accounting Sheet Ans: Tracks payroll details for each pay period.
Embezzlement Prevention Ans: Double-entry systems help reduce fraud
risk.
Financial Statement Balance Ans: Ensures accounting equations are
maintained.
Invoice Ans: Request for payment for services rendered.
W-4 Form Ans: Employee form for Federal tax withholding.
Adjusting Process Ans: Verifying and recording entries at period end.
Ethical Responsibilities Ans: Obligations to maintain client confidentiality
and accuracy.
Net Pay Ans: Amount after all deductions from gross pay.
Owner's Contribution Ans: Equity account for owner's personal funds
invested.
Asset Ans: Resource owned by a business with future benefits.
Confidentiality Ans: Keeping client financial information private.
Revenue Recognition Ans: Recording income when earned, not received.
Banking Account Ans: Account used for business transactions and
deposits.
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Loan Ans: Borrowed funds to be repaid with interest.
Inventory Liquidation Ans: Selling off stock to cover expenses.
Owner's Investment Ans: Funds contributed by the owner to the
business.
Journal Entries Ans: Records of financial transactions in accounting.
Deductions Ans: Amounts subtracted from gross pay for taxes.
Financial Statements Ans: Reports summarizing financial performance
and position.
Ethical Bookkeeping Ans: Practices ensuring accuracy and legality in
records.
Transaction Recording Ans: Documenting financial transactions
accurately and timely.
Deposit Slip Ans: Document showing funds deposited into a bank
account.
Credit Card Payable Ans: Liability for amounts owed on credit cards.
Gross Pay Ans: Total earnings before any deductions.
Confidential Information Ans: Sensitive data that must be protected.
Non-Disclosure Agreement Ans: Contract preventing sharing of
confidential information.
Owner's Contribution Ans: Investment made by the owner into the
business.
Assets Ans: Resources owned by a business with value.
Liabilities Ans: Obligations or debts owed by a business.
Equity Ans: Owner's residual interest in the business.
