Intuit Bookkeeping Exam with verified detailed solutions
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Four Key Elements of Bookkeeping Ethics - ✔✔Honesty, Objectivity, Confidentiality and
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Professionalism
What is DEALER - ✔✔Dividends + Expenses + Assets = Liabilities + Owner's Equity
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(beginning) + Revenue || ||
What's is the accounting Equation? - ✔✔Assets = Liabilities + Equity
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Profit and Loss statement. Shows the company's revenues and expenses during a particular period
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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
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time - ✔✔The Balance Sheet
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Reports the changes in company equity, from the opening balance to the end of the period
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balance. - ✔✔The Statement of Equity || || || || ||
Reports the sources and uses of cash by a business - ✔✔The Statement of Cash Flow
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Accounting Cycle - ✔✔1. Analyze and record transactions || || || || || || ||
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 - ✔✔Sales Receipt
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If customers does not pay at the time of sale you must enter it as a - ✔✔Invoice
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Once and customer has paid an invoice it goes to - ✔✔Receive payment
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Receive payment and sales receipt are followed by - ✔✔Bank deposit
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Step 4 of The Accounting Cycle: Preparing adjusted entries includes - ✔✔Deferrals, Accruals,
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Missing Transactions, and Tax Adjustments || || || ||
Removing transactions that belong to a different period - ✔✔Deferral || || || || || || || || ||
Opposite of deferral. Concern future payments or expenses - ✔✔Accruals || || || || || || || || ||
The Business is a separate entity, so the activities of a business must be kept separate from any
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other financial activities of its business owners - ✔✔Economic Entity Assumption
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Only transactions that can be proven should be recorded in accounting practices. And what this
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means is that businesses must be able to prove transactions through such things as receipts, billing
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statements, invoices, and bank statements. - ✔✔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
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in financial statements or in the notes of the statements - ✔✔Full Disclosure Principle
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When choosing between two solutions, the one that will be least likely to overstate assets and
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income should be selected. - ✔✔Conservatism Assumption
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Four Key Elements of Bookkeeping Ethics - ✔✔Honesty, Objectivity, Confidentiality and
|| || || || || || || || || || ||
Professionalism
What is DEALER - ✔✔Dividends + Expenses + Assets = Liabilities + Owner's Equity
|| || || || || || || || || || || || || ||
(beginning) + Revenue || ||
What's is the accounting Equation? - ✔✔Assets = Liabilities + Equity
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Profit and Loss statement. Shows the company's revenues and expenses during a particular period
|| || || || || || || || || || || || || ||
- ✔✔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 - ✔✔The Balance Sheet
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Reports the changes in company equity, from the opening balance to the end of the period
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balance. - ✔✔The Statement of Equity || || || || ||
Reports the sources and uses of cash by a business - ✔✔The Statement of Cash Flow
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Accounting Cycle - ✔✔1. Analyze and record transactions || || || || || || ||
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
|| || || ||
6. Prepare financial statements
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, If customers pays at the time of sale you must enter it as a - ✔✔Sales Receipt
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If customers does not pay at the time of sale you must enter it as a - ✔✔Invoice
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Once and customer has paid an invoice it goes to - ✔✔Receive payment
|| || || || || || || || || || || ||
Receive payment and sales receipt are followed by - ✔✔Bank deposit
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Step 4 of The Accounting Cycle: Preparing adjusted entries includes - ✔✔Deferrals, Accruals,
|| || || || || || || || || || || || ||
Missing Transactions, and Tax Adjustments || || || ||
Removing transactions that belong to a different period - ✔✔Deferral || || || || || || || || ||
Opposite of deferral. Concern future payments or expenses - ✔✔Accruals || || || || || || || || ||
The Business is a separate entity, so the activities of a business must be kept separate from any
|| || || || || || || || || || || || || || || || || ||
other financial activities of its business owners - ✔✔Economic Entity Assumption
|| || || || || || || || || ||
Only transactions that can be proven should be recorded in accounting practices. And what this
|| || || || || || || || || || || || || || ||
means is that businesses must be able to prove transactions through such things as receipts, billing
|| || || || || || || || || || || || || || ||
statements, invoices, and bank statements. - ✔✔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
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in financial statements or in the notes of the statements - ✔✔Full Disclosure Principle
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When choosing between two solutions, the one that will be least likely to overstate assets and
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income should be selected. - ✔✔Conservatism Assumption
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