Intuit Bookkeeping Exam Questions and Answers 2026

Intuit Bookkeeping Exam Questions and
Answers 2026
Key Principles of Bookkeeping
Four Key Elements of Bookkeeping Ethics

 Honesty: Essential for maintaining trust and integrity in financial reporting.

 Objectivity: Ensures that personal biases do not influence financial decisions.

 Confidentiality: Protects sensitive information from unauthorized access.

 Professionalism: Upholds the standards and practices of the accounting profession.

Fundamental Accounting Concepts

 DEALER Equation: Dividends + Expenses + Assets = Liabilities + Owner's Equity
(beginning) + Revenue; a foundational equation in bookkeeping.

 Accounting Equation: Assets = Liabilities + Equity; this equation must always balance
in financial statements.

 Profit and Loss Statement: A financial report that summarizes revenues and expenses
over a specific period, indicating profitability.

 Balance Sheet: A snapshot of a company's financial position at a specific point in time,
detailing assets, liabilities, and equity.


Financial Statements Overview
Types of Financial Statements

 Income Statement: Reports a company's revenues and expenses, showing net income or
loss for a period.

 Statement of Equity: Details changes in equity from the beginning to the end of a
period, including contributions and distributions.

 Statement of Cash Flow: Illustrates cash inflows and outflows, categorized into
operating, investing, and financing activities.

, Accounting Cycle Steps ZI ZI




1. Analyze and Record Transactions: Initial step where transactions are identified and rec
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orded in journals. ZI ZI




2. Post Transactions to Ledger: Transactions are transferred from journals to the general le
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dger.

3. Prepare Unadjusted Trial Balance: A preliminary balance of all accounts to check for e
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rrors.

4. Prepare Adjusted Entries: Adjustments for deferrals, accruals, and other necessary corr
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ections.

5. Prepare Adjusted Trial Balance: A revised trial balance after adjustments are made.
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6. Prepare Financial Statements: Final step where financial statements are generated from
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the adjusted trial balance.
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Accounting Principles and Assumptions ZI ZI ZI




Key Accounting Principles
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 Economic Entity Assumption: Business transactions must be kept separate from persona
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l transactions of owners.
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 Reliability Assumption: Only verifiable transactions should be recorded, ensuring accur
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acy in financial reporting.
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 Full Disclosure Principle: All relevant financial information must be disclosed in statem
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ents or notes to provide transparency.
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 Conservatism Assumption: When in doubt, choose the option that does not overstate ass
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ets or income.
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Accounting Methods ZI




 Cash-
Basis Accounting: Revenues and expenses are recognized when cash is received or paid.
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 Accrual Accounting: Revenues are recognized when earned and expenses when incurred
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, regardless of cash flow.
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 Hybrid Accounting: A combination of cash-
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basis and accrual methods, allowing flexibility in financial reporting.
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