Intuit Bookkeeping Professional
Certificate questions and answers
What are the 5 Account Types? - answer - Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? - answer Assets = Liabilities + Equity
What does DEA/LER stand for? - answer - Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
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
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
,What are the 4 types of accounting adjustments? - answer - Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? - 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.
- 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? - 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. - answer -
$539,000
The accounting equation can be defined as: - answer - Assets = Liability + Equity
What the company owns or controls and expects to gain value from is defined as: - answer - An Asset
What the company owes to others is defined as: - answer - Liabilities
, The owner's stake in the company is defined as: - answer - Equity
A way of bookkeeping that tracks which accounts increase and which decrease for a given transaction is
known as: - answer - Double-entry Accounting
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.
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.
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 - I
nventory 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? - 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? -
answer - Accounts payable
The company pays off the credit card bill. This transaction impacts the accounts payable and the cash
accounts. In your journal entry, which account do you credit? - answer - Cash account
Debits are always represented on what side of a T-chart? - answer - The left.
Short-term Investments would be an example of what kind of account? - answer - An asset account.
Accounts payable would be an example of what kind of account? - answer - A liability account.
Certificate questions and answers
What are the 5 Account Types? - answer - Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? - answer Assets = Liabilities + Equity
What does DEA/LER stand for? - answer - Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
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
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
,What are the 4 types of accounting adjustments? - answer - Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? - 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.
- 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? - 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. - answer -
$539,000
The accounting equation can be defined as: - answer - Assets = Liability + Equity
What the company owns or controls and expects to gain value from is defined as: - answer - An Asset
What the company owes to others is defined as: - answer - Liabilities
, The owner's stake in the company is defined as: - answer - Equity
A way of bookkeeping that tracks which accounts increase and which decrease for a given transaction is
known as: - answer - Double-entry Accounting
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.
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.
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 - I
nventory 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? - 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? -
answer - Accounts payable
The company pays off the credit card bill. This transaction impacts the accounts payable and the cash
accounts. In your journal entry, which account do you credit? - answer - Cash account
Debits are always represented on what side of a T-chart? - answer - The left.
Short-term Investments would be an example of what kind of account? - answer - An asset account.
Accounts payable would be an example of what kind of account? - answer - A liability account.
