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INTUIT BOOKKEEPING PROFESSIONAL
CERTIFICATE TEST EXAM UPDATED 2026–2027
WITH ALL NEW QUESTIONS AND EXACTLY
RIGHT ANSWERS | A+ QUALITY GUARANTEE
1. What is the main purpose of bookkeeping?
A. Analyzing long-term business strategy
B. Recording and organizing financial transactions
C. Preparing tax returns
D. Auditing historical financial records
Answer: B
2. The accounting equation is:
A. Assets + Liabilities = Equity
B. Assets = Liabilities + Equity
C. Assets – Equity = Liabilities
D. Liabilities = Assets – Equity
Answer: B
3. A business pays rent with cash. Which accounts are affected?
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A. Rent expense ↑, Cash ↑
B. Rent expense ↑, Cash ↓
C. Rent expense ↓, Cash ↓
D. Equity ↑, Cash ↓
Answer: B
4. Which financial statement shows a company’s financial position at a
specific point in time?
A. Income statement
B. Balance sheet
C. Statement of cash flows
D. Trial balance
Answer: B
5. Which type of account normally has a credit balance?
A. Assets
B. Expenses
C. Liabilities
D. Dividends
Answer: C
6. Revenue is recorded when:
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A. Cash is deposited
B. An invoice is received
C. A sale occurs, regardless of when cash is collected
D. The customer pays
Answer: C
7. Depreciation is classified as:
A. Revenue
B. Liability
C. Operating expense
D. Asset
Answer: C
8. A business purchases office supplies on account. What happens?
A. Supplies ↑, Cash ↓
B. Supplies ↑, Accounts payable ↑
C. Expenses ↑, Cash ↑
D. Equity ↑, Accounts payable ↓
Answer: B
9. Which statement reports earnings over time?
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A. Balance sheet
B. Income statement
C. Statement of investments
D. Trial balance
Answer: B
10. What does the cash method of accounting record?
A. Revenue and expenses when earned
B. Revenue and expenses when cash moves
C. Only revenue when cash is received
D. Only expenses when paid
Answer: B
11. A customer pays an invoice that was previously billed. What accounts
change?
A. Cash ↑, Accounts receivable ↓
B. Cash ↑, Revenue ↑
C. A/R ↑, Equity ↑
D. Cash ↓, A/R ↑
Answer: A
12. Which document proves that a business purchased something?
INTUIT BOOKKEEPING PROFESSIONAL
CERTIFICATE TEST EXAM UPDATED 2026–2027
WITH ALL NEW QUESTIONS AND EXACTLY
RIGHT ANSWERS | A+ QUALITY GUARANTEE
1. What is the main purpose of bookkeeping?
A. Analyzing long-term business strategy
B. Recording and organizing financial transactions
C. Preparing tax returns
D. Auditing historical financial records
Answer: B
2. The accounting equation is:
A. Assets + Liabilities = Equity
B. Assets = Liabilities + Equity
C. Assets – Equity = Liabilities
D. Liabilities = Assets – Equity
Answer: B
3. A business pays rent with cash. Which accounts are affected?
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A. Rent expense ↑, Cash ↑
B. Rent expense ↑, Cash ↓
C. Rent expense ↓, Cash ↓
D. Equity ↑, Cash ↓
Answer: B
4. Which financial statement shows a company’s financial position at a
specific point in time?
A. Income statement
B. Balance sheet
C. Statement of cash flows
D. Trial balance
Answer: B
5. Which type of account normally has a credit balance?
A. Assets
B. Expenses
C. Liabilities
D. Dividends
Answer: C
6. Revenue is recorded when:
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A. Cash is deposited
B. An invoice is received
C. A sale occurs, regardless of when cash is collected
D. The customer pays
Answer: C
7. Depreciation is classified as:
A. Revenue
B. Liability
C. Operating expense
D. Asset
Answer: C
8. A business purchases office supplies on account. What happens?
A. Supplies ↑, Cash ↓
B. Supplies ↑, Accounts payable ↑
C. Expenses ↑, Cash ↑
D. Equity ↑, Accounts payable ↓
Answer: B
9. Which statement reports earnings over time?
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A. Balance sheet
B. Income statement
C. Statement of investments
D. Trial balance
Answer: B
10. What does the cash method of accounting record?
A. Revenue and expenses when earned
B. Revenue and expenses when cash moves
C. Only revenue when cash is received
D. Only expenses when paid
Answer: B
11. A customer pays an invoice that was previously billed. What accounts
change?
A. Cash ↑, Accounts receivable ↓
B. Cash ↑, Revenue ↑
C. A/R ↑, Equity ↑
D. Cash ↓, A/R ↑
Answer: A
12. Which document proves that a business purchased something?
