Intuit Academy Bookkeeping Professional Certificate: Bookkeeping Basics
Questions and Correct Answers
1. The Accounting PrincipleANSWER You can't mix business and personal assets or expenses.
2. Accounting EquationANSWER Assets = Liabilities + Owner's Equity
or
Assets - Liabilities = Owner's Equity
3. Expanded Accounting EquationANSWER Assets = Liabilities + Equity + Revenue - Expenses -
Dividends
4. The Five Account TypesANSWER Assets, Liabilities, Equity, Revenue, Expenses
5. Normal balance of the five account typesANSWER Assets- Normal Dr balance
Expenses- Normal Dr balance
Dividends- Normal Dr balance
Equity- Normal Cr balance
Revenue- Normal Cr balance
6. General JournalANSWER A list of transactions organized chronologically
7. Posting to the LedgerANSWER transfer transactions entered in the journal to the general ledger and
categorize
transactions by account
8. Accounting CycleANSWER a collective process of identifying, analyzing, and recording the accounting
events of a company
9. Steps in the Accounting CycleANSWER 1. Collect, analyze, and post transactions to the Journal
2. Post transactions to the ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusting entries at period end
5. Prepare an adjusted trial balance
6. Prepare financial statements
10. Accounting adjustmentsANSWER A business transaction that has not yet been included in the
accounting records.
I.E Deferrals, depreciation, and accruals
11. income statement (profit and loss statement)ANSWER A type of financial statement that
describes a firm's revenues and expenses and indicates whether the firm has earned a profit or suttered a loss
during a given period.
12. Balance SheetANSWER A financial statement that reports assets, liabilities, and owner's equity on a specific
date.
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Questions and Correct Answers
1. The Accounting PrincipleANSWER You can't mix business and personal assets or expenses.
2. Accounting EquationANSWER Assets = Liabilities + Owner's Equity
or
Assets - Liabilities = Owner's Equity
3. Expanded Accounting EquationANSWER Assets = Liabilities + Equity + Revenue - Expenses -
Dividends
4. The Five Account TypesANSWER Assets, Liabilities, Equity, Revenue, Expenses
5. Normal balance of the five account typesANSWER Assets- Normal Dr balance
Expenses- Normal Dr balance
Dividends- Normal Dr balance
Equity- Normal Cr balance
Revenue- Normal Cr balance
6. General JournalANSWER A list of transactions organized chronologically
7. Posting to the LedgerANSWER transfer transactions entered in the journal to the general ledger and
categorize
transactions by account
8. Accounting CycleANSWER a collective process of identifying, analyzing, and recording the accounting
events of a company
9. Steps in the Accounting CycleANSWER 1. Collect, analyze, and post transactions to the Journal
2. Post transactions to the ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusting entries at period end
5. Prepare an adjusted trial balance
6. Prepare financial statements
10. Accounting adjustmentsANSWER A business transaction that has not yet been included in the
accounting records.
I.E Deferrals, depreciation, and accruals
11. income statement (profit and loss statement)ANSWER A type of financial statement that
describes a firm's revenues and expenses and indicates whether the firm has earned a profit or suttered a loss
during a given period.
12. Balance SheetANSWER A financial statement that reports assets, liabilities, and owner's equity on a specific
date.
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