Intuit Bookkeeping Study Material Exam
In bookkeeping, a signed agreement between two parties, used to document money
owed, interest, and payment timeframe is known as what? - Answer -Promissary Note
Rent for Eternal Summer is $1,200/month , but if it is prepaid , rent is only $12,000 for
the year. If Eternal Summer pays $12,000 on January 1, how would you book this
transaction? - Answer -Debit prepaid rent for $12,000 and Credit Cash rent for $12,000
Which path would you select in Quickbooks Online to create a sales receipt? - Answer -
New > Sales Receipt
When creating an invoice in Quickbooks Online, which path would you choose to add a
new customer? - Answer -Customer > Add New
True or False. The Direct Write-Off method of accounting for "Bad Debt" adheres to the
matching principle - Answer -False
True or False. A perprtual inventory system is one that updates the inventory account at
specified intervals - Answer -False
The inventory cost flow assumption which supposes that inventory flows through the
system from oldest to newest is defined as what assumption? - Answer -First In, First
Out (FIFO)
True or False. Inventory errors will self-correct after two years (assuming no other errors
occur.) - Answer -True
True or False. PP&E and expenses are treated the same when it comes to taxes. -
Answer -False
True or False. Depreciation expense is recorded on the balance sheet below PP&E. -
Answer -False
When using QBO software, depreciation expense must be entered as a: - Answer -
Journal Entry
A kind of lease in which ownership of the asset is intended at the end of the lease is
called: - Answer -A capital lease
In bookkeeping, a signed agreement between two parties, used to document money
owed, interest, and payment timeframe is known as what? - Answer -Promissary Note
Rent for Eternal Summer is $1,200/month , but if it is prepaid , rent is only $12,000 for
the year. If Eternal Summer pays $12,000 on January 1, how would you book this
transaction? - Answer -Debit prepaid rent for $12,000 and Credit Cash rent for $12,000
Which path would you select in Quickbooks Online to create a sales receipt? - Answer -
New > Sales Receipt
When creating an invoice in Quickbooks Online, which path would you choose to add a
new customer? - Answer -Customer > Add New
True or False. The Direct Write-Off method of accounting for "Bad Debt" adheres to the
matching principle - Answer -False
True or False. A perprtual inventory system is one that updates the inventory account at
specified intervals - Answer -False
The inventory cost flow assumption which supposes that inventory flows through the
system from oldest to newest is defined as what assumption? - Answer -First In, First
Out (FIFO)
True or False. Inventory errors will self-correct after two years (assuming no other errors
occur.) - Answer -True
True or False. PP&E and expenses are treated the same when it comes to taxes. -
Answer -False
True or False. Depreciation expense is recorded on the balance sheet below PP&E. -
Answer -False
When using QBO software, depreciation expense must be entered as a: - Answer -
Journal Entry
A kind of lease in which ownership of the asset is intended at the end of the lease is
called: - Answer -A capital lease
