Intuit Bookkeeping Exam Practice 2025-
2026 Guide Test
1. What is the Purpose of a balance sheet To determine the financial health of an or-
ganization at a point in time.
2. Financial elements on the income state- Expenses, Revenue
ment:
3. Financial elements on the balance sheet: Assets, Capital, and Liabilities
4. Accounts that increase with debit Cash, equipment, assets, expenses, and div-
idends
5. Accounts that increase with credit Contra-Asset : Accumulated Depreciation,
Account Payable, common stock, equity, rev-
enue and liability
6. Lou has a landscaping company. He re- Debit $10,000 to Cash; Credit $10,000 to
ceived a $10,000 payment for a landscap- Service Revenue - Landscaping
ing job that he completed for the Rose
family. How would you record this transac-
tion?
7. Definition of a debit in double-entry ac- An increase in assets/expenses and a de-
counting crease in liabilities/owner's equity and rev-
enue.
8. General Ledger The debits and credits posted to the compa-
ny's line of credit during the last 6 months
9. Transaction Journal The debits and credits recorded for a rental
equipment expense
10. income statement (profit and loss state- Report of all revenue and expenses for the
ment) month
,11. Is the ending balance for the inventory on Yes, Ending balance for the inventory
Balance Sheet?
12. Reasons for making adjusting journal en- a. To record expiration of prepaid insurance.
tries (Choose 3) b. To record depreciation. c. To recognize
unpaid salaries for the current period.
13. Economic Entity Assumption The business is a separate entity, so the ac-
tivities of a business must be kept separate
from any other financial activities of its busi-
ness owners.
14. Reliability Assumption Makes mandatory for companies to record
only accounting transactions that can be
verified through invoices, billing statements
and bank statements.
15. Full Disclosure Principle All information that is relative to the business
and is important to a lender or investor has
to be provided in financial statements or in
the notes of the statements.
16. Conservatism Assumption When bookkeepers are uncertain and need
to determine how to report an item, this
guides them to choose the option that
shows less income or asset benefit.
17. Going Concern Assumption Refers to a business that is now stable
enough to operate and meet its obligations
for the foreseeable future.
18. Monetary Unit Assumption Refers to one monetary unit being used
throughout all of the accounting activities.
, 19. Consistency Principle Refers to when a business adopts a specific
accounting method that it will enter all simi-
lar items in the exact same way in the future.
20. Materiality Principle Refers to an accounting standard that can be
ignored if the impact has such a small ettect
on the financial statements that it would not
be misleading.
21. On February 28, ABC Company received Expenses are increased by $1,200.
an invoice for $1,200 for running social
media ads in February. The invoice will be
paid in March. Assuming ABC Company
uses the accrual method of accounting,
which is correct for February?
22. Which of the following accounts is not con- Inventory
sidered a long term asset?
23. Difference between current assets and Current assets are expected to be converted
long-term assets to cash within one year, while Long-term
assets are expected to extend beyond a year
from the reporting date.
24. Normal (natural) Debit balance account Asset and Expense
types
25. Normal (natural) Credit balance account Liabilities, Equity, and Revenue
types
26. What is the Maximum amount of time that Annually
a business owner should wait to correct
inventory errors?
2026 Guide Test
1. What is the Purpose of a balance sheet To determine the financial health of an or-
ganization at a point in time.
2. Financial elements on the income state- Expenses, Revenue
ment:
3. Financial elements on the balance sheet: Assets, Capital, and Liabilities
4. Accounts that increase with debit Cash, equipment, assets, expenses, and div-
idends
5. Accounts that increase with credit Contra-Asset : Accumulated Depreciation,
Account Payable, common stock, equity, rev-
enue and liability
6. Lou has a landscaping company. He re- Debit $10,000 to Cash; Credit $10,000 to
ceived a $10,000 payment for a landscap- Service Revenue - Landscaping
ing job that he completed for the Rose
family. How would you record this transac-
tion?
7. Definition of a debit in double-entry ac- An increase in assets/expenses and a de-
counting crease in liabilities/owner's equity and rev-
enue.
8. General Ledger The debits and credits posted to the compa-
ny's line of credit during the last 6 months
9. Transaction Journal The debits and credits recorded for a rental
equipment expense
10. income statement (profit and loss state- Report of all revenue and expenses for the
ment) month
,11. Is the ending balance for the inventory on Yes, Ending balance for the inventory
Balance Sheet?
12. Reasons for making adjusting journal en- a. To record expiration of prepaid insurance.
tries (Choose 3) b. To record depreciation. c. To recognize
unpaid salaries for the current period.
13. Economic Entity Assumption The business is a separate entity, so the ac-
tivities of a business must be kept separate
from any other financial activities of its busi-
ness owners.
14. Reliability Assumption Makes mandatory for companies to record
only accounting transactions that can be
verified through invoices, billing statements
and bank statements.
15. Full Disclosure Principle All information that is relative to the business
and is important to a lender or investor has
to be provided in financial statements or in
the notes of the statements.
16. Conservatism Assumption When bookkeepers are uncertain and need
to determine how to report an item, this
guides them to choose the option that
shows less income or asset benefit.
17. Going Concern Assumption Refers to a business that is now stable
enough to operate and meet its obligations
for the foreseeable future.
18. Monetary Unit Assumption Refers to one monetary unit being used
throughout all of the accounting activities.
, 19. Consistency Principle Refers to when a business adopts a specific
accounting method that it will enter all simi-
lar items in the exact same way in the future.
20. Materiality Principle Refers to an accounting standard that can be
ignored if the impact has such a small ettect
on the financial statements that it would not
be misleading.
21. On February 28, ABC Company received Expenses are increased by $1,200.
an invoice for $1,200 for running social
media ads in February. The invoice will be
paid in March. Assuming ABC Company
uses the accrual method of accounting,
which is correct for February?
22. Which of the following accounts is not con- Inventory
sidered a long term asset?
23. Difference between current assets and Current assets are expected to be converted
long-term assets to cash within one year, while Long-term
assets are expected to extend beyond a year
from the reporting date.
24. Normal (natural) Debit balance account Asset and Expense
types
25. Normal (natural) Credit balance account Liabilities, Equity, and Revenue
types
26. What is the Maximum amount of time that Annually
a business owner should wait to correct
inventory errors?
