1|Page
INTUIT BOOKKEEPING EXAM LATEST 2026 ACTUAL
VERIFIED EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+||NEWEST
EXAM!!!||
Definition of a debit in double-entry accounting - Answer-
An increase in assets/expenses and a decrease in
liabilities/owner's equity and revenue.
General Ledger - Answer-The debits and credits posted to
the company's line of credit during the last 6 months
Transaction Journal - Answer-The debits and credits
recorded for a rental equipment expense
income statement (profit and loss statement) - Answer-
Report of all revenue and expenses for the month
Is the ending balance for the inventory on Balance Sheet?
- Answer-Yes, Ending balance for the inventory
,2|Page
Reasons for making adjusting journal entries (Choose 3) -
Answer-a. To record expiration of prepaid insurance. b. To
record depreciation. c. To recognize unpaid salaries for the
current period.
Economic Entity Assumption - Answer-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.
Reliability Assumption - Answer-Makes mandatory for
companies to record only accounting transactions that can
be verified through invoices, billing statements and bank
statements.
What is the Purpose of a balance sheet - Answer-To
determine the financial health of an organization at a point
in time.
Financial elements on the income statement: - Answer-
Expenses, Revenue
Financial elements on the balance sheet: - Answer-Assets,
Capital, and Liabilities
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Accounts that increase with debit - Answer-Cash,
equipment, assets, expenses, and dividends
Accounts that increase with credit - Answer-Contra-Asset :
Accumulated Depreciation, Account Payable, common
stock, equity, revenue and liability
Lou has a landscaping company. He received a $10,000
payment for a landscaping job that he completed for the
Rose family. How would you record this transaction? -
Answer-Debit $10,000 to Cash; Credit $10,000 to Service
Revenue - Landscaping
Full Disclosure Principle - Answer-All information that is
relative to the business and is important to a lender or
investor has to be provided in financial statements or in
the notes of the statements.
Conservatism Assumption - Answer-When bookkeepers
are uncertain and need to determine how to report an
item, this guides them to choose the option that shows
less income or asset benefit.
, 4|Page
Going Concern Assumption - Answer-Refers to a business
that is now stable enough to operate and meet its
obligations for the foreseeable future.
Monetary Unit Assumption - Answer-Refers to one
monetary unit being used throughout all of the accounting
activities.
Consistency Principle - Answer-Refers to when a business
adopts a specific accounting method that it will enter all
similar items in the exact same way in the future.
Materiality Principle - Answer-Refers to an accounting
standard that can be ignored if the impact has such a
small effect on the financial statements that it would not be
misleading.
On February 28, ABC Company received an invoice for
$1,200 for running social media ads in February. The
invoice will be paid in March. Assuming ABC Company
uses the accrual method of accounting, which is correct
for February? - Answer-Expenses are increased by
$1,200.
INTUIT BOOKKEEPING EXAM LATEST 2026 ACTUAL
VERIFIED EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+||NEWEST
EXAM!!!||
Definition of a debit in double-entry accounting - Answer-
An increase in assets/expenses and a decrease in
liabilities/owner's equity and revenue.
General Ledger - Answer-The debits and credits posted to
the company's line of credit during the last 6 months
Transaction Journal - Answer-The debits and credits
recorded for a rental equipment expense
income statement (profit and loss statement) - Answer-
Report of all revenue and expenses for the month
Is the ending balance for the inventory on Balance Sheet?
- Answer-Yes, Ending balance for the inventory
,2|Page
Reasons for making adjusting journal entries (Choose 3) -
Answer-a. To record expiration of prepaid insurance. b. To
record depreciation. c. To recognize unpaid salaries for the
current period.
Economic Entity Assumption - Answer-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.
Reliability Assumption - Answer-Makes mandatory for
companies to record only accounting transactions that can
be verified through invoices, billing statements and bank
statements.
What is the Purpose of a balance sheet - Answer-To
determine the financial health of an organization at a point
in time.
Financial elements on the income statement: - Answer-
Expenses, Revenue
Financial elements on the balance sheet: - Answer-Assets,
Capital, and Liabilities
,3|Page
Accounts that increase with debit - Answer-Cash,
equipment, assets, expenses, and dividends
Accounts that increase with credit - Answer-Contra-Asset :
Accumulated Depreciation, Account Payable, common
stock, equity, revenue and liability
Lou has a landscaping company. He received a $10,000
payment for a landscaping job that he completed for the
Rose family. How would you record this transaction? -
Answer-Debit $10,000 to Cash; Credit $10,000 to Service
Revenue - Landscaping
Full Disclosure Principle - Answer-All information that is
relative to the business and is important to a lender or
investor has to be provided in financial statements or in
the notes of the statements.
Conservatism Assumption - Answer-When bookkeepers
are uncertain and need to determine how to report an
item, this guides them to choose the option that shows
less income or asset benefit.
, 4|Page
Going Concern Assumption - Answer-Refers to a business
that is now stable enough to operate and meet its
obligations for the foreseeable future.
Monetary Unit Assumption - Answer-Refers to one
monetary unit being used throughout all of the accounting
activities.
Consistency Principle - Answer-Refers to when a business
adopts a specific accounting method that it will enter all
similar items in the exact same way in the future.
Materiality Principle - Answer-Refers to an accounting
standard that can be ignored if the impact has such a
small effect on the financial statements that it would not be
misleading.
On February 28, ABC Company received an invoice for
$1,200 for running social media ads in February. The
invoice will be paid in March. Assuming ABC Company
uses the accrual method of accounting, which is correct
for February? - Answer-Expenses are increased by
$1,200.
