Intuit Bookkeeping Professional
Certificate Exam
What are the 5 Account Types? CORRECT ANSWER: - Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? CORRECT ANSWER: Assets = Liabilities + Equity
What does DEA/LER stand for? CORRECT ANSWER: - Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
What are the 5 steps of the Accounting-Cycle? CORRECT ANSWER: 1. Identify
transactions
2. record transactions
3. run reports
4. adjusting entries
5. close the books
What are the 4 Types of financial statements? CORRECT 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
What are the 4 types of accounting adjustments? CORRECT ANSWER: - Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? CORRECT ANSWER: - Handle bank feeds and
reconciles bank accounts, managing accounts receivable/payable, and record financial
transactions
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. CORRECT ANSWER: - $520,000
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 the accounting equation to determine what Mike's Owner's equity will be
as of December 31, 2020? CORRECT ANSWER: - $373,000
Maria Garcia owns a software consulting firm. At the beginning of 2019, her firm had
assets of $800,000 and liabilities of $185,000. Assuming that assets decreased by
$52,000 and liabilities increased by $24,000 during 2020, use the accounting equation
to calculate equity at the end of 2020. CORRECT ANSWER: - $539,000
The accounting equation can be defined as: CORRECT ANSWER: - Assets = Liability +
Equity
What the company owns or controls and expects to gain value from is defined as:
CORRECT ANSWER: - An Asset
What the company owes to others is defined as: CORRECT ANSWER: - Liabilities
The owner's stake in the company is defined as: CORRECT ANSWER: - Equity
A way of bookkeeping that tracks which accounts increase and which decrease for a
given transaction is known as: CORRECT ANSWER: - Double-entry Accounting
Which of the following best defines a credit as it's used in double-entry accounting?
CORRECT ANSWER: - A decrease in assets/expenses and an increase in
liabilities/owner's equity and revenue.
Which of the following best defines a debit as it's used in double-entry accounting?
CORRECT ANSWER: - An increase in assets/expenses and a decrease in
liabilities/owner's equity and revenue.
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? CORRECT ANSWER: - Inventory account
An owner invests $1000 in the company. This transaction impacted the checking
account and the owner's equity account. In your journal entry, which account do you
credit? CORRECT ANSWER: - Owner's equity account
A sales manager purchases office supplies with the company credit card. This
transaction impacts the accounts payable and the office supplies accounts. In your
journal entry, which account do you credit? CORRECT ANSWER: - Accounts payable
Certificate Exam
What are the 5 Account Types? CORRECT ANSWER: - Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? CORRECT ANSWER: Assets = Liabilities + Equity
What does DEA/LER stand for? CORRECT ANSWER: - Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
What are the 5 steps of the Accounting-Cycle? CORRECT ANSWER: 1. Identify
transactions
2. record transactions
3. run reports
4. adjusting entries
5. close the books
What are the 4 Types of financial statements? CORRECT 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
What are the 4 types of accounting adjustments? CORRECT ANSWER: - Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? CORRECT ANSWER: - Handle bank feeds and
reconciles bank accounts, managing accounts receivable/payable, and record financial
transactions
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. CORRECT ANSWER: - $520,000
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 the accounting equation to determine what Mike's Owner's equity will be
as of December 31, 2020? CORRECT ANSWER: - $373,000
Maria Garcia owns a software consulting firm. At the beginning of 2019, her firm had
assets of $800,000 and liabilities of $185,000. Assuming that assets decreased by
$52,000 and liabilities increased by $24,000 during 2020, use the accounting equation
to calculate equity at the end of 2020. CORRECT ANSWER: - $539,000
The accounting equation can be defined as: CORRECT ANSWER: - Assets = Liability +
Equity
What the company owns or controls and expects to gain value from is defined as:
CORRECT ANSWER: - An Asset
What the company owes to others is defined as: CORRECT ANSWER: - Liabilities
The owner's stake in the company is defined as: CORRECT ANSWER: - Equity
A way of bookkeeping that tracks which accounts increase and which decrease for a
given transaction is known as: CORRECT ANSWER: - Double-entry Accounting
Which of the following best defines a credit as it's used in double-entry accounting?
CORRECT ANSWER: - A decrease in assets/expenses and an increase in
liabilities/owner's equity and revenue.
Which of the following best defines a debit as it's used in double-entry accounting?
CORRECT ANSWER: - An increase in assets/expenses and a decrease in
liabilities/owner's equity and revenue.
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? CORRECT ANSWER: - Inventory account
An owner invests $1000 in the company. This transaction impacted the checking
account and the owner's equity account. In your journal entry, which account do you
credit? CORRECT ANSWER: - Owner's equity account
A sales manager purchases office supplies with the company credit card. This
transaction impacts the accounts payable and the office supplies accounts. In your
journal entry, which account do you credit? CORRECT ANSWER: - Accounts payable
