Intuit Academy Bookkeeping Professional Certificate: Bookkeeping
Basics Study Guide Exam Questions and Verified Answers
1. The Accounting Principle: You can't mix business and personal assets or expenses.
2. Accounting Equation: Assets = Liabilities + Oẃner's Equity
or
Assets - Liabilities = Oẃner's Equity
3. Expanded Accounting Equation: Assets = Liabilities + Equity + Revenue - Expenses - Dividends
4. The Five Account Types: Assets, Liabilities, Equity, Revenue, Expenses
5. Normal balance of the five account types: Assets- Normal Dr balance
Expenses- Normal Dr balance
Dividends- Normal Dr balance
Equity- Normal Cr balance
Revenue- Normal Cr balance
6. General Journal: A list of transactions organized chronologically
7. Posting to the Ledger: transfer transactions entered in the journal to the general ledger and categorize
transactions by account
8. Accounting Cycle: a collective process of identifying, analyzing, and recording the accounting events of a
company
9. Steps in the Accounting Cycle: 1. Collect, analyze, and post transactions to the Journal
2. Post transactions to the ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusting entries at period end
5. Prepare an adjusted trial balance
6. Prepare financial statements
10. Accounting adjustments: A business transaction that has not yet been included in the accounting
records.
I.E Deferrals, depreciation, and accruals
11. income statement (profit and loss statement): A type of financial statement that describes a firm's
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, revenues and expenses and indicates ẃhether the firm has earned a profit or suttered a loss during a given period.
12. Balance Sheet: A financial statement that reports assets, liabilities, and oẃner's equity on a specific date.
13. Statement of Equity: Reports changes in company equity from beginning to period end
14. Cash Floẃ Statement: Reports the sources and uses of cash by a business
15. Undeposited Funds: a temporary account that holds payments you plan to deposit later
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Basics Study Guide Exam Questions and Verified Answers
1. The Accounting Principle: You can't mix business and personal assets or expenses.
2. Accounting Equation: Assets = Liabilities + Oẃner's Equity
or
Assets - Liabilities = Oẃner's Equity
3. Expanded Accounting Equation: Assets = Liabilities + Equity + Revenue - Expenses - Dividends
4. The Five Account Types: Assets, Liabilities, Equity, Revenue, Expenses
5. Normal balance of the five account types: Assets- Normal Dr balance
Expenses- Normal Dr balance
Dividends- Normal Dr balance
Equity- Normal Cr balance
Revenue- Normal Cr balance
6. General Journal: A list of transactions organized chronologically
7. Posting to the Ledger: transfer transactions entered in the journal to the general ledger and categorize
transactions by account
8. Accounting Cycle: a collective process of identifying, analyzing, and recording the accounting events of a
company
9. Steps in the Accounting Cycle: 1. Collect, analyze, and post transactions to the Journal
2. Post transactions to the ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusting entries at period end
5. Prepare an adjusted trial balance
6. Prepare financial statements
10. Accounting adjustments: A business transaction that has not yet been included in the accounting
records.
I.E Deferrals, depreciation, and accruals
11. income statement (profit and loss statement): A type of financial statement that describes a firm's
1/5
, revenues and expenses and indicates ẃhether the firm has earned a profit or suttered a loss during a given period.
12. Balance Sheet: A financial statement that reports assets, liabilities, and oẃner's equity on a specific date.
13. Statement of Equity: Reports changes in company equity from beginning to period end
14. Cash Floẃ Statement: Reports the sources and uses of cash by a business
15. Undeposited Funds: a temporary account that holds payments you plan to deposit later
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