Intuit Bookkeeping Exam questions and answers
Four Key Elements of Bookkeeping Ethics - Answer ✔✔ - Honesty, Objectivity, Confidentiality and Professionalis
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What is DEALER - Answer ✔✔ - Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) +
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Revenue
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What's is the accounting Equation? - Answer ✔✔ - Assets = Liabilities + Equity
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Profit and Loss statement. Shows the company's revenues and expenses during a particular period - Answer ✔✔
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The Income Statement
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A financial statement that reports a company's assets, liabilities, and equity at a specific point in time - Answer ✔✔
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The Balance Sheet
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Reports the changes in company equity, from the opening balance to the end of the period balance. - Answer ✔✔
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The Statement of Equity
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Reports the sources and uses of cash by a business - Answer ✔✔ - The Statement of Cash Flow
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Accounting Cycle - Answer ✔✔ - 1. Analyze and record transactions bv bv bv bv bv bv bv bv bv bv bv bv
2. Post transactions to ledger
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3. Prepare an unadjusted trial balance
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4. Prepare adjusted entries at the end of the period
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5. Prepare adjusted trial balance
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6. Prepare financial statements
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If customers pays at the time of sale you must enter it as a - Answer ✔✔ - Sales Receipt
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If customers does not pay at the time of sale you must enter it as a - Answer ✔✔ - Invoice
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Once and customer has paid an invoice it goes to - Answer ✔✔ - Receive payment
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Receive payment and sales receipt are followed by - Answer ✔✔ - Bank deposit
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Step 4 of The Accounting Cycle: Preparing adjusted entries includes - Answer ✔✔ - Deferrals, Accruals, Missing
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Transactions, and Tax Adjustments
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Removing transactions that belong to a different period - Answer ✔✔ - Deferral
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Opposite of deferral. Concern future payments or expenses - Answer ✔✔ - Accruals
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The Business is a separate entity, so the activities of a business must be kept separate from any other financial
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activities of its business owners - Answer ✔✔ - Economic Entity Assumption
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,Only transactions that can be proven should be recorded in accounting practices. And what this means is that
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businesses must be able to prove transactions through such things as receipts, billing statements, invoices, and
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bank statements. - Answer ✔✔ - Reliability Assumption
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All info that is relative to the business and is important to a lender or investor has to be disclosed in financial
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statements or in the notes of the statements - Answer ✔✔ - Full Disclosure Principle
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When choosing between two solutions, the one that will be least likely to overstate assets and income should be
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selected. - Answer ✔✔ - Conservatism Assumption
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States that an amount can be ignored if its effect on the financial statements is small and not misleading - Answer ✔
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✔ - Materiality Principle
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Once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods so
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that the results reported from period to period are comparable - Answer ✔✔ - Consistency Principle
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One currency is used throughout all accounting activities. In the US the dollar is the currency used in accounting.
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When this currency is used, inflation is not a consideration in recording finances - Answer ✔✔ - Monetary Unit
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Assumption
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Refers to a business that is stable enough to operate and meet its obligation for the future - Answer ✔✔ - Going
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Concern Assumption
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Revenue is recognized when payment is received and expenses are recognized when paid out - Answer ✔✔ -
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Cash-Basis Account Method
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Revenues are reported when they are earned and expenses are reported when they are incurred - Answer ✔✔ -
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Accrual Method of Accounting
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A combo of cash-basis and accrual methods - Answer ✔✔ - Hybrid Accounting
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Things your company owns that you can easily convert to cash and expect to do so within the next 12 months -
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Answer ✔✔ - Currents Assets
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Things your company owns that you expect to have for more than 12 months - Answer ✔✔ - Long-term Assets
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The total you get when adding all current assets and all long-term assets. This should equal Total Liabilities+Toal
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Equity - Answer ✔✔ - Total Assets
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A physical asset, such as inventory, vehicle, or a building - Answer ✔✔ - Tangible Asset
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Not a physical asset. Examples would be a copyright, patent, or brand recoginition - Answer ✔✔ - Intangible Asse
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A signed document containing a written promise to pay a stated sum to a specified person or bearer at a specified a
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or on-demand - Answer ✔✔ - Promissory Note
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Notes Receivable - Answer ✔✔ - A current or non-current asset
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Notes Payable - Answer ✔✔ - A current or non-current liability
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Four Key Elements of Bookkeeping Ethics - Answer ✔✔ - Honesty, Objectivity, Confidentiality and Professionalis
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What is DEALER - Answer ✔✔ - Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) +
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Revenue
bv
What's is the accounting Equation? - Answer ✔✔ - Assets = Liabilities + Equity
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Profit and Loss statement. Shows the company's revenues and expenses during a particular period - Answer ✔✔
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
The Income Statement
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A financial statement that reports a company's assets, liabilities, and equity at a specific point in time - Answer ✔✔
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The Balance Sheet
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Reports the changes in company equity, from the opening balance to the end of the period balance. - Answer ✔✔
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv b
The Statement of Equity
bv bv bv bv
Reports the sources and uses of cash by a business - Answer ✔✔ - The Statement of Cash Flow
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Accounting Cycle - Answer ✔✔ - 1. Analyze and record transactions bv bv bv bv bv bv bv bv bv bv bv bv
2. Post transactions to ledger
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3. Prepare an unadjusted trial balance
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4. Prepare adjusted entries at the end of the period
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5. Prepare adjusted trial balance
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6. Prepare financial statements
bv bv bv
If customers pays at the time of sale you must enter it as a - Answer ✔✔ - Sales Receipt
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
If customers does not pay at the time of sale you must enter it as a - Answer ✔✔ - Invoice
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Once and customer has paid an invoice it goes to - Answer ✔✔ - Receive payment
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Receive payment and sales receipt are followed by - Answer ✔✔ - Bank deposit
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Step 4 of The Accounting Cycle: Preparing adjusted entries includes - Answer ✔✔ - Deferrals, Accruals, Missing
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Transactions, and Tax Adjustments
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Removing transactions that belong to a different period - Answer ✔✔ - Deferral
bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Opposite of deferral. Concern future payments or expenses - Answer ✔✔ - Accruals
bv bv bv bv bv bv bv bv bv bv bv bv bv bv
The Business is a separate entity, so the activities of a business must be kept separate from any other financial
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
activities of its business owners - Answer ✔✔ - Economic Entity Assumption
bv bv bv bv bv bv bv bv bv bv bv bv bv bv
1
/
,Only transactions that can be proven should be recorded in accounting practices. And what this means is that
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businesses must be able to prove transactions through such things as receipts, billing statements, invoices, and
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
bank statements. - Answer ✔✔ - Reliability Assumption
bv bv bv bv bv bv bv bv bv bv
All info that is relative to the business and is important to a lender or investor has to be disclosed in financial
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
statements or in the notes of the statements - Answer ✔✔ - Full Disclosure Principle
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When choosing between two solutions, the one that will be least likely to overstate assets and income should be
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
selected. - Answer ✔✔ - Conservatism Assumption
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States that an amount can be ignored if its effect on the financial statements is small and not misleading - Answer ✔
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
✔ - Materiality Principle
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Once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods so
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
that the results reported from period to period are comparable - Answer ✔✔ - Consistency Principle
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
One currency is used throughout all accounting activities. In the US the dollar is the currency used in accounting.
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
When this currency is used, inflation is not a consideration in recording finances - Answer ✔✔ - Monetary Unit
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Assumption
bv
Refers to a business that is stable enough to operate and meet its obligation for the future - Answer ✔✔ - Going
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Concern Assumption
bv bv
Revenue is recognized when payment is received and expenses are recognized when paid out - Answer ✔✔ -
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Cash-Basis Account Method
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Revenues are reported when they are earned and expenses are reported when they are incurred - Answer ✔✔ -
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Accrual Method of Accounting
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A combo of cash-basis and accrual methods - Answer ✔✔ - Hybrid Accounting
bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Things your company owns that you can easily convert to cash and expect to do so within the next 12 months -
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Answer ✔✔ - Currents Assets
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Things your company owns that you expect to have for more than 12 months - Answer ✔✔ - Long-term Assets
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
The total you get when adding all current assets and all long-term assets. This should equal Total Liabilities+Toal
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Equity - Answer ✔✔ - Total Assets
bv bv bv bv bv bv bv bv bv
A physical asset, such as inventory, vehicle, or a building - Answer ✔✔ - Tangible Asset
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
Not a physical asset. Examples would be a copyright, patent, or brand recoginition - Answer ✔✔ - Intangible Asse
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
A signed document containing a written promise to pay a stated sum to a specified person or bearer at a specified a
bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv bv
or on-demand - Answer ✔✔ - Promissory Note
bv bv bv bv bv bv bv bv bv bv
Notes Receivable - Answer ✔✔ - A current or non-current asset
bv bv bv bv bv bv bv bv bv bv bv bv
Notes Payable - Answer ✔✔ - A current or non-current liability
bv bv bv bv bv bv bv bv bv bv bv bv
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