1|P age
INTUIT BOOKKEEPING PROFESSIONAL
CERTIFICATE EXAM PRACTICE QUESTIONS
UPDATED 2025–2026 WITH ALL NEW
QUESTIONS AND EXACTLY RIGHT ANSWERS |
A+ QUALITY GUARANTEE
What is the Full Disclosure Principle? - ANSWER: - All information relative to
the business that is important to a lender or invested MUST be disclosed in
financial statements or notes in the statements
Cecilia Tubular sells 1980s themed enamel pins. She has a huge inventory she
purchased in 1984 at $0.10 each. They are now worth $1 each. According to the
Monetary Unit Assumption, you:
- ANSWER: - Keep the value of the pins at $0.10 each.
What is the Conservatism Assumption? - ANSWER: - When bookkeepers are
uncertain and need to determine how to report an item.
- Choose the option that shows less income or asset benefit
- Potential losses can be recorded, potential gains, CANNOT.
What are the 5 Account Types? - ANSWER: - Assets
,2|P age
- Liabilities
- Equity
- Revenue
- Expenses
When a bookkeeper is using the US dollar as currency in accounting and is not
considering changes in the value of that currency she is employing the: -
ANSWER: - Monetary Unit Assumption
This assumption / principle is very subjective and should be used with caution
outside of rounding to the nearest dollar when entering financial information. -
ANSWER: - Materiality Principle
A company is considered a Going Concern when it: - ANSWER:
- Is stable, able to operate and able to meet its financial obligations.
If a business is using the Consistency Principle they will: - ANSWER:
- Adopt a specific accounting method and will enter all similar items in the exact
same way in the future.
,3|P age
True or False: According to the Periodicity Assumption, companies can only
review their financial health at the end of their fiscal year? - ANSWER: - False
A client owns a small vinyl sign printing company called Printing Pros. They
completed a print job for a customer on August 10, but the customer did not pay
for the service until October 15.
In which month should the revenue be recognized for this big print job? -
ANSWER: - August
Printing Pros had another big job to do in April and needed to hire additional help
to make their deadline. The new employee received their first paycheck at the
beginning of May.
When should Printing Pros recognize the expense of paying their employee? -
ANSWER: - April
According to the Revenue Recognition Principle, when should a business
recognize its revenue? - ANSWER: - When it is earned
Which of the following best describes the Periodicity Assumption? - ANSWER: -
Companies can assume that business activity can be broken up into smaller
measurements of time
, 4|P age
Cash Flow Statement: 3 types, definition & purpose - ANSWER:
A summary that shows total income and spending for a given time period
1) operating activities
2) investment activities
3) financing activities
What is a journal entry? - ANSWER: a way to document an accounting entry
lists debits & credits & includes a description of the transaction
Which of the following statements would best describe the Matching Principle? -
ANSWER: - Expenses like manufacturing costs or depreciation should be
recognized in the same period as the revenue it helped generate
What is the accounting formula? - ANSWER: Assets = Liabilities + Equity
What does DEA/LER stand for? - ANSWER: - Debit Expenses and Assets
- Credit Liabilities Equity Revenue
INTUIT BOOKKEEPING PROFESSIONAL
CERTIFICATE EXAM PRACTICE QUESTIONS
UPDATED 2025–2026 WITH ALL NEW
QUESTIONS AND EXACTLY RIGHT ANSWERS |
A+ QUALITY GUARANTEE
What is the Full Disclosure Principle? - ANSWER: - All information relative to
the business that is important to a lender or invested MUST be disclosed in
financial statements or notes in the statements
Cecilia Tubular sells 1980s themed enamel pins. She has a huge inventory she
purchased in 1984 at $0.10 each. They are now worth $1 each. According to the
Monetary Unit Assumption, you:
- ANSWER: - Keep the value of the pins at $0.10 each.
What is the Conservatism Assumption? - ANSWER: - When bookkeepers are
uncertain and need to determine how to report an item.
- Choose the option that shows less income or asset benefit
- Potential losses can be recorded, potential gains, CANNOT.
What are the 5 Account Types? - ANSWER: - Assets
,2|P age
- Liabilities
- Equity
- Revenue
- Expenses
When a bookkeeper is using the US dollar as currency in accounting and is not
considering changes in the value of that currency she is employing the: -
ANSWER: - Monetary Unit Assumption
This assumption / principle is very subjective and should be used with caution
outside of rounding to the nearest dollar when entering financial information. -
ANSWER: - Materiality Principle
A company is considered a Going Concern when it: - ANSWER:
- Is stable, able to operate and able to meet its financial obligations.
If a business is using the Consistency Principle they will: - ANSWER:
- Adopt a specific accounting method and will enter all similar items in the exact
same way in the future.
,3|P age
True or False: According to the Periodicity Assumption, companies can only
review their financial health at the end of their fiscal year? - ANSWER: - False
A client owns a small vinyl sign printing company called Printing Pros. They
completed a print job for a customer on August 10, but the customer did not pay
for the service until October 15.
In which month should the revenue be recognized for this big print job? -
ANSWER: - August
Printing Pros had another big job to do in April and needed to hire additional help
to make their deadline. The new employee received their first paycheck at the
beginning of May.
When should Printing Pros recognize the expense of paying their employee? -
ANSWER: - April
According to the Revenue Recognition Principle, when should a business
recognize its revenue? - ANSWER: - When it is earned
Which of the following best describes the Periodicity Assumption? - ANSWER: -
Companies can assume that business activity can be broken up into smaller
measurements of time
, 4|P age
Cash Flow Statement: 3 types, definition & purpose - ANSWER:
A summary that shows total income and spending for a given time period
1) operating activities
2) investment activities
3) financing activities
What is a journal entry? - ANSWER: a way to document an accounting entry
lists debits & credits & includes a description of the transaction
Which of the following statements would best describe the Matching Principle? -
ANSWER: - Expenses like manufacturing costs or depreciation should be
recognized in the same period as the revenue it helped generate
What is the accounting formula? - ANSWER: Assets = Liabilities + Equity
What does DEA/LER stand for? - ANSWER: - Debit Expenses and Assets
- Credit Liabilities Equity Revenue
