INTUIT BOOKKEEPING PROFESSIONAL CERTIFICATION EXAM
(2026-2027) COMPLETE 200-QUESTION PRACTICE TEST WITH
DETAILED ANSWERS AND RATIONALES A+ VERIFIED LATEST
VERSION
SECTION 1: ACCOUNTING FOUNDATIONS (1–20)
1. What is the accounting equation?
A. Assets = Expenses + Revenue
B. Assets = Liabilities + Equity
C. Assets = Cash + Revenue
D. Liabilities = Assets + Revenue
Answer: B
Rationale: This equation shows how assets are financed through debt and owner investment.
2. Which statement shows financial performance?
A. Balance Sheet
B. Income Statement
C. Trial Balance
D. General Ledger
Answer: B
Rationale: The income statement reports revenues and expenses over time.
3. Assets are best described as:
A. Business obligations
B. Resources owned by a business
C. Owner withdrawals
D. Business expenses
Answer: B
4. Liabilities represent:
A. Owner investments
B. Amounts owed to others
C. Cash inflows
D. Revenue earned
Answer: B
,5. Equity is:
A. Business debt
B. Owner’s residual interest
C. Cash balance
D. Expense total
Answer: B
6. The accounting cycle begins with:
A. Adjusting entries
B. Identifying transactions
C. Closing books
D. Financial reporting
Answer: B
7. Revenues are recorded when:
A. Cash is received only
B. Earned regardless of cash
C. Expenses occur
D. Bills are paid
Answer: B
8. Expenses are:
A. Increases in equity
B. Costs of operations
C. Owner investments
D. Asset purchases only
Answer: B
9. Which is NOT an asset?
A. Cash
B. Accounts receivable
C. Loans payable
D. Equipment
Answer: C
10. A credit increases:
A. Assets
B. Expenses
C. Liabilities
,D. Drawings
Answer: C
11. A debit increases:
A. Revenue
B. Liabilities
C. Expenses
D. Equity
Answer: C
12. Double-entry accounting requires:
A. One-sided entries
B. Equal debits and credits
C. Cash-only recording
D. Annual adjustments only
Answer: B
13. The purpose of the trial balance is to:
A. Detect fraud
B. Ensure debits equal credits
C. Prepare invoices
D. Record cash flow
Answer: B
14. The general ledger contains:
A. Bank statements
B. All account summaries
C. Tax forms
D. Payroll slips
Answer: B
15. Posting means:
A. Writing invoices
B. Moving journal entries to ledger
C. Closing accounts
D. Paying bills
Answer: B
, 16. Journal entries must:
A. Be unbalanced
B. Follow FIFO
C. Balance debits and credits
D. Be cash-based only
Answer: C
17. Owner withdrawals decrease:
A. Revenue
B. Equity
C. Expenses
D. Assets only
Answer: B
18. Which account is temporary?
A. Cash
B. Equipment
C. Revenue
D. Buildings
Answer: C
19. Accrual accounting records transactions when:
A. Cash moves
B. Events occur
C. Bank approves
D. Month ends
Answer: B
20. Cash basis accounting records when:
A. Earned
B. Paid or received
C. Budgeted
D. Invoiced
Answer: B
SECTION 2: JOURNAL ENTRIES & LEDGERS (21–35)
21. A journal entry always includes:
A. Only credits
(2026-2027) COMPLETE 200-QUESTION PRACTICE TEST WITH
DETAILED ANSWERS AND RATIONALES A+ VERIFIED LATEST
VERSION
SECTION 1: ACCOUNTING FOUNDATIONS (1–20)
1. What is the accounting equation?
A. Assets = Expenses + Revenue
B. Assets = Liabilities + Equity
C. Assets = Cash + Revenue
D. Liabilities = Assets + Revenue
Answer: B
Rationale: This equation shows how assets are financed through debt and owner investment.
2. Which statement shows financial performance?
A. Balance Sheet
B. Income Statement
C. Trial Balance
D. General Ledger
Answer: B
Rationale: The income statement reports revenues and expenses over time.
3. Assets are best described as:
A. Business obligations
B. Resources owned by a business
C. Owner withdrawals
D. Business expenses
Answer: B
4. Liabilities represent:
A. Owner investments
B. Amounts owed to others
C. Cash inflows
D. Revenue earned
Answer: B
,5. Equity is:
A. Business debt
B. Owner’s residual interest
C. Cash balance
D. Expense total
Answer: B
6. The accounting cycle begins with:
A. Adjusting entries
B. Identifying transactions
C. Closing books
D. Financial reporting
Answer: B
7. Revenues are recorded when:
A. Cash is received only
B. Earned regardless of cash
C. Expenses occur
D. Bills are paid
Answer: B
8. Expenses are:
A. Increases in equity
B. Costs of operations
C. Owner investments
D. Asset purchases only
Answer: B
9. Which is NOT an asset?
A. Cash
B. Accounts receivable
C. Loans payable
D. Equipment
Answer: C
10. A credit increases:
A. Assets
B. Expenses
C. Liabilities
,D. Drawings
Answer: C
11. A debit increases:
A. Revenue
B. Liabilities
C. Expenses
D. Equity
Answer: C
12. Double-entry accounting requires:
A. One-sided entries
B. Equal debits and credits
C. Cash-only recording
D. Annual adjustments only
Answer: B
13. The purpose of the trial balance is to:
A. Detect fraud
B. Ensure debits equal credits
C. Prepare invoices
D. Record cash flow
Answer: B
14. The general ledger contains:
A. Bank statements
B. All account summaries
C. Tax forms
D. Payroll slips
Answer: B
15. Posting means:
A. Writing invoices
B. Moving journal entries to ledger
C. Closing accounts
D. Paying bills
Answer: B
, 16. Journal entries must:
A. Be unbalanced
B. Follow FIFO
C. Balance debits and credits
D. Be cash-based only
Answer: C
17. Owner withdrawals decrease:
A. Revenue
B. Equity
C. Expenses
D. Assets only
Answer: B
18. Which account is temporary?
A. Cash
B. Equipment
C. Revenue
D. Buildings
Answer: C
19. Accrual accounting records transactions when:
A. Cash moves
B. Events occur
C. Bank approves
D. Month ends
Answer: B
20. Cash basis accounting records when:
A. Earned
B. Paid or received
C. Budgeted
D. Invoiced
Answer: B
SECTION 2: JOURNAL ENTRIES & LEDGERS (21–35)
21. A journal entry always includes:
A. Only credits
