Page 1 of 35
Intuit Bookkeeping Professional
Certificate EXAM ALL QUESTIONS AND
VERIFIED SOLUTIONS LATEST UPDATE
THIS YEAR
QUESTION: A way of bookkeeping that tracks which accounts increase and which decrease for a
given transaction is known as: - ANSWER-- Double-entry Accounting
QUESTION: Which of the following best defines a credit as it's used in double-entry accounting?
- ANSWER-- A decrease in assets/expenses and an increase in liabilities/owner's equity and
revenue.
QUESTION: Which of the following best defines a debit as it's used in double-entry accounting?
- ANSWER-- An increase in assets/expenses and a decrease in liabilities/owner's equity and
revenue.
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QUESTION: You purchased inventory from your vendor and paid cash. The accounts affected
are the inventory account and the cash account. In your journal entry, which account would you
debit? - ANSWER-- Inventory account
What are the 5 Account Types? - ANSWER-- Assets
- Liabilities
- Equity
- Revenue
- Expenses
QUESTION: What is the accounting formula? - ANSWER-Assets = Liabilities + Equity
QUESTION: What does DEA/LER stand for? - ANSWER-- Debit
Expenses and Assets
- Credit
Liabilities
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Equity
Revenue
QUESTION: 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
QUESTION: 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
QUESTION: What are the 4 types of accounting adjustments? - ANSWER-- Deferrals
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- Accruals
- Missing Transactions
- Tax Adjustments
QUESTION: What tasks would a bookkeeper do? - ANSWER-- Handle bank feeds and reconciles
bank accounts, managing accounts receivable/payable, and record financial transactions
QUESTION: 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
QUESTION: 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
4
Intuit Bookkeeping Professional
Certificate EXAM ALL QUESTIONS AND
VERIFIED SOLUTIONS LATEST UPDATE
THIS YEAR
QUESTION: A way of bookkeeping that tracks which accounts increase and which decrease for a
given transaction is known as: - ANSWER-- Double-entry Accounting
QUESTION: Which of the following best defines a credit as it's used in double-entry accounting?
- ANSWER-- A decrease in assets/expenses and an increase in liabilities/owner's equity and
revenue.
QUESTION: Which of the following best defines a debit as it's used in double-entry accounting?
- ANSWER-- An increase in assets/expenses and a decrease in liabilities/owner's equity and
revenue.
1
, Page 2 of 35
QUESTION: You purchased inventory from your vendor and paid cash. The accounts affected
are the inventory account and the cash account. In your journal entry, which account would you
debit? - ANSWER-- Inventory account
What are the 5 Account Types? - ANSWER-- Assets
- Liabilities
- Equity
- Revenue
- Expenses
QUESTION: What is the accounting formula? - ANSWER-Assets = Liabilities + Equity
QUESTION: What does DEA/LER stand for? - ANSWER-- Debit
Expenses and Assets
- Credit
Liabilities
2
, Page 3 of 35
Equity
Revenue
QUESTION: 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
QUESTION: 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
QUESTION: What are the 4 types of accounting adjustments? - ANSWER-- Deferrals
3
, Page 4 of 35
- Accruals
- Missing Transactions
- Tax Adjustments
QUESTION: What tasks would a bookkeeper do? - ANSWER-- Handle bank feeds and reconciles
bank accounts, managing accounts receivable/payable, and record financial transactions
QUESTION: 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
QUESTION: 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
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