INTUIT BOOKKEEPING LATEST
PROFESSIONAL
CERTIFICATE EXAM
if a truck depreciates by $25k, do you increase or decrease Accumulated
Depreciation? - ANSWERS-Decrease (it's an asset... aka credit)
to decrease the value of an asset, which account would you credit? -
ANSWERS-accumulated depreciation
what is a contra asset account? - ANSWERS-a type of asset account
where the account balance may either be a negative or zero balance (ex:
accumulated depreciation)
time period principle - ANSWERS-to start a new year, the PNL
accounts are reset to zero;
a business must finish the full accounting process over a specific
operating time period (a year)
What is retained earnings? - ANSWERS-net income company has left
over after it has been paid out to dividends to its shareholders
END OF
PAGE
1
, INTUIT BOOKKEEPING LATEST
PROFESSIONAL
CERTIFICATE EXAM
Which report shows Accumulated Depreciation? - ANSWERS-Balance
Sheet (asset)
Depreciation Expense is shown on which report? - ANSWERS-PNL
(Expense)
what in an invoice? - ANSWERS-sent to customer AFTER they receive
a product/service
if you're recording monthly depreciation, which accounts will be
affected and how? - ANSWERS-debit depreciation expense and credit
accumulated depreciation
what is a "payment on account" - ANSWERS-made for purchases on
account where the customer has not yet received a bill or invoice
can you have current and long-term liabilities on the Balance Sheet? -
ANSWERS-yes
END OF
PAGE
2
, INTUIT BOOKKEEPING LATEST
PROFESSIONAL
CERTIFICATE EXAM
True or false: the owner can claim assets even when there are
outstanding liabilities - ANSWERS-false
Equity or liability: dividends - ANSWERS-equity
equity or liability: note payable - ANSWERS-liability
equity or liability: common stock - ANSWERS-equity
bill vs invoice - ANSWERS-bill = due now. invoice = due in future
when do you debit (decrease) a credit card on cash basis? when you
purchase the item? or when you pay off the credit card? - ANSWERS-
when you purchase the item
what type of account is capital? - ANSWERS-equity
END OF
PAGE
3
, INTUIT BOOKKEEPING LATEST
PROFESSIONAL
CERTIFICATE EXAM
3 reasons you could have a difference when reconciling the bank
account - ANSWERS-1. you are trying to reconcile to the wrong ending
balance
2. you are missing a transaction that has cleared the bank account
3. the amount you recorded the transaction for does not match the
amount that shows on the bank statement
is it likely that a journal entry adjustment will affect a credit card
account when trying to reconcile? - ANSWERS-no
what does a comparative income statement show? - ANSWERS-the
income & expenses broken down to compare different years
what should you do with uncleared checks when reconciling? -
ANSWERS-leave them as they will likely clear on next month's
statement
what type of accounts do you reconcile? - ANSWERS-accounts for
which you receive a statement (petty cash, credit card payable, checking
acct, etc.)
END OF
PAGE
4
PROFESSIONAL
CERTIFICATE EXAM
if a truck depreciates by $25k, do you increase or decrease Accumulated
Depreciation? - ANSWERS-Decrease (it's an asset... aka credit)
to decrease the value of an asset, which account would you credit? -
ANSWERS-accumulated depreciation
what is a contra asset account? - ANSWERS-a type of asset account
where the account balance may either be a negative or zero balance (ex:
accumulated depreciation)
time period principle - ANSWERS-to start a new year, the PNL
accounts are reset to zero;
a business must finish the full accounting process over a specific
operating time period (a year)
What is retained earnings? - ANSWERS-net income company has left
over after it has been paid out to dividends to its shareholders
END OF
PAGE
1
, INTUIT BOOKKEEPING LATEST
PROFESSIONAL
CERTIFICATE EXAM
Which report shows Accumulated Depreciation? - ANSWERS-Balance
Sheet (asset)
Depreciation Expense is shown on which report? - ANSWERS-PNL
(Expense)
what in an invoice? - ANSWERS-sent to customer AFTER they receive
a product/service
if you're recording monthly depreciation, which accounts will be
affected and how? - ANSWERS-debit depreciation expense and credit
accumulated depreciation
what is a "payment on account" - ANSWERS-made for purchases on
account where the customer has not yet received a bill or invoice
can you have current and long-term liabilities on the Balance Sheet? -
ANSWERS-yes
END OF
PAGE
2
, INTUIT BOOKKEEPING LATEST
PROFESSIONAL
CERTIFICATE EXAM
True or false: the owner can claim assets even when there are
outstanding liabilities - ANSWERS-false
Equity or liability: dividends - ANSWERS-equity
equity or liability: note payable - ANSWERS-liability
equity or liability: common stock - ANSWERS-equity
bill vs invoice - ANSWERS-bill = due now. invoice = due in future
when do you debit (decrease) a credit card on cash basis? when you
purchase the item? or when you pay off the credit card? - ANSWERS-
when you purchase the item
what type of account is capital? - ANSWERS-equity
END OF
PAGE
3
, INTUIT BOOKKEEPING LATEST
PROFESSIONAL
CERTIFICATE EXAM
3 reasons you could have a difference when reconciling the bank
account - ANSWERS-1. you are trying to reconcile to the wrong ending
balance
2. you are missing a transaction that has cleared the bank account
3. the amount you recorded the transaction for does not match the
amount that shows on the bank statement
is it likely that a journal entry adjustment will affect a credit card
account when trying to reconcile? - ANSWERS-no
what does a comparative income statement show? - ANSWERS-the
income & expenses broken down to compare different years
what should you do with uncleared checks when reconciling? -
ANSWERS-leave them as they will likely clear on next month's
statement
what type of accounts do you reconcile? - ANSWERS-accounts for
which you receive a statement (petty cash, credit card payable, checking
acct, etc.)
END OF
PAGE
4
