INTUIT BOOKKEEPING ACTUAL EXAM TEST PAPER FULL QUESTIONS CORRECT
RESPONSES
●● What is the accounting formula? Answer: Assets = Liabilities +
Equity
●● What does DEA/LER stand for? Answer: - Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
●● What are the 5 steps of the Accounting-Cycle? Answer: 1. Identify
transactions
2. record transactions
3. run reports
4. adjusting entries
5. close the books
,●● What are the 4 Types of financial statements? Answer: - The income
statement (aka P&L statement: Income, COGS, expenses)
- The balance sheet (assets, liabilities, equity)
- The statement of equity
- The statement of cash flow
●● What are the 4 types of accounting adjustments? Answer: - Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
●● What tasks would a bookkeeper do? Answer: - Handle bank feeds
and reconciles bank accounts, managing accounts receivable/payable,
and record financial transactions
●● Mary Smith is the owner and operator of Smith Construction. At the
end of the company's accounting period, December 31, 2020, Smith
Construction has assets totaling $760,000 and liabilities totaling
$240,000.
Use the accounting equation to calculate what Mary's Owner Equity
would be as of December 31, 2020. Answer: - $520,000
, ●● Mike Anderson is the owner and operator of Anderson Consulting.
At the end of 2019, the company's assets totaled $500,000 and its
liabilities totaled $175,000. Assuming that over the 2020 fiscal year,
assets increased by $120,000 and liabilities increased by $72,000, use
the accounting equation to determine what Mike's Owner's equity will be
as of December 31, 2020? Answer: - $373,000
●● Maria Garcia owns a software consulting firm. At the beginning of
2019, her firm had assets of $800,000 and liabilities of $185,000.
Assuming that assets decreased by $52,000 and liabilities increased by
$24,000 during 2020, use the accounting equation to calculate equity at
the end of 2020. Answer: - $539,000
●● The accounting equation can be defined as: Answer: - Assets =
Liability + Equity
●● What the company owns or controls and expects to gain value from
is defined as: Answer: - An Asset
●● What the company owes to others is defined as: Answer: - Liabilities
●● The owner's stake in the company is defined as: Answer: - Equity
●● A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as: Answer: - Double-entry
Accounting
RESPONSES
●● What is the accounting formula? Answer: Assets = Liabilities +
Equity
●● What does DEA/LER stand for? Answer: - Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
●● What are the 5 steps of the Accounting-Cycle? Answer: 1. Identify
transactions
2. record transactions
3. run reports
4. adjusting entries
5. close the books
,●● What are the 4 Types of financial statements? Answer: - The income
statement (aka P&L statement: Income, COGS, expenses)
- The balance sheet (assets, liabilities, equity)
- The statement of equity
- The statement of cash flow
●● What are the 4 types of accounting adjustments? Answer: - Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
●● What tasks would a bookkeeper do? Answer: - Handle bank feeds
and reconciles bank accounts, managing accounts receivable/payable,
and record financial transactions
●● Mary Smith is the owner and operator of Smith Construction. At the
end of the company's accounting period, December 31, 2020, Smith
Construction has assets totaling $760,000 and liabilities totaling
$240,000.
Use the accounting equation to calculate what Mary's Owner Equity
would be as of December 31, 2020. Answer: - $520,000
, ●● Mike Anderson is the owner and operator of Anderson Consulting.
At the end of 2019, the company's assets totaled $500,000 and its
liabilities totaled $175,000. Assuming that over the 2020 fiscal year,
assets increased by $120,000 and liabilities increased by $72,000, use
the accounting equation to determine what Mike's Owner's equity will be
as of December 31, 2020? Answer: - $373,000
●● Maria Garcia owns a software consulting firm. At the beginning of
2019, her firm had assets of $800,000 and liabilities of $185,000.
Assuming that assets decreased by $52,000 and liabilities increased by
$24,000 during 2020, use the accounting equation to calculate equity at
the end of 2020. Answer: - $539,000
●● The accounting equation can be defined as: Answer: - Assets =
Liability + Equity
●● What the company owns or controls and expects to gain value from
is defined as: Answer: - An Asset
●● What the company owes to others is defined as: Answer: - Liabilities
●● The owner's stake in the company is defined as: Answer: - Equity
●● A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as: Answer: - Double-entry
Accounting
