Intuit Academy Bookkeeping
Professional Certificate: Liabilities and
Equity 2024/2025 Exam Questions and
Answers | 100% Solved
Accounting Equation - 🧠 ANSWER ✔✔Assets = Liabilities + Owner's
Equity
Current Liabilities - 🧠 ANSWER ✔✔Will be paid in 1 year (I.E Accounts
payable, Payroll and benefits Liabilites, Lines of Credit, Credit Cards,
Income Tax Liabilities, Deferred Revenue)
Noncurrent Liabilities - 🧠 ANSWER ✔✔Due in 1 year or more (I.E Long
term loans; Notes Payable: mortgage, car loan, promissory loan; Bonds
payable; Deferred income tax)
Liquidity - 🧠 ANSWER ✔✔The ability to generate sufficient current assets
to pay current liabilities
Solvency - 🧠 ANSWER ✔✔Ability to meet company obligations in future
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
, Debt to Equity Ratio - 🧠 ANSWER ✔✔Tracks increases and decreases in
liabilities as a percentage of equity.
Accounts Receivable Turnover Rate - 🧠 ANSWER ✔✔How fast accounts
receivable are collected
Income Tax - 🧠 ANSWER ✔✔Taxes payed to the state and federal
government on wages earned by employees
Bonds Payable - 🧠 ANSWER ✔✔long term debt securities issued by a
company which promises to pay back the principal at some specified point
in the future
Deferred Income Tax - 🧠 ANSWER ✔✔The result of the disparity between
income recognition and accounting methods; Represents the difference
between the amount of depreciation expense on financial statements vs.
the amount reported on inc tax return.
Vendor lines of credit - 🧠 ANSWER ✔✔A vendor lends money to your
client so that they can buy supplies and pay them back later; Your client
can use these to get supplies, from a vendor, when they can't afford it right
away
4 Sale Tax Questions - 🧠 ANSWER ✔✔How, Why, Where, and When
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
Professional Certificate: Liabilities and
Equity 2024/2025 Exam Questions and
Answers | 100% Solved
Accounting Equation - 🧠 ANSWER ✔✔Assets = Liabilities + Owner's
Equity
Current Liabilities - 🧠 ANSWER ✔✔Will be paid in 1 year (I.E Accounts
payable, Payroll and benefits Liabilites, Lines of Credit, Credit Cards,
Income Tax Liabilities, Deferred Revenue)
Noncurrent Liabilities - 🧠 ANSWER ✔✔Due in 1 year or more (I.E Long
term loans; Notes Payable: mortgage, car loan, promissory loan; Bonds
payable; Deferred income tax)
Liquidity - 🧠 ANSWER ✔✔The ability to generate sufficient current assets
to pay current liabilities
Solvency - 🧠 ANSWER ✔✔Ability to meet company obligations in future
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
, Debt to Equity Ratio - 🧠 ANSWER ✔✔Tracks increases and decreases in
liabilities as a percentage of equity.
Accounts Receivable Turnover Rate - 🧠 ANSWER ✔✔How fast accounts
receivable are collected
Income Tax - 🧠 ANSWER ✔✔Taxes payed to the state and federal
government on wages earned by employees
Bonds Payable - 🧠 ANSWER ✔✔long term debt securities issued by a
company which promises to pay back the principal at some specified point
in the future
Deferred Income Tax - 🧠 ANSWER ✔✔The result of the disparity between
income recognition and accounting methods; Represents the difference
between the amount of depreciation expense on financial statements vs.
the amount reported on inc tax return.
Vendor lines of credit - 🧠 ANSWER ✔✔A vendor lends money to your
client so that they can buy supplies and pay them back later; Your client
can use these to get supplies, from a vendor, when they can't afford it right
away
4 Sale Tax Questions - 🧠 ANSWER ✔✔How, Why, Where, and When
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
