Intuit Bookkeeping Professional Certificate Questions With
Complete Solutions
3 reasons you could have a difference when reconciling the bank
account Correct 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
5 Bookkeeping Ethics Correct Answers 1. objectivity
2. competence
3. integrity
4. confidentiality
5. professional conduct
A Balance Sheet has four parts: a heading, assets, liabilities, and
______. Correct Answers - equity
A business owner performs a service and is paid when the job is
performed. The owner would then enter this transaction into
accounting software as: Correct Answers - A Sales Receipt
A business owner performs a service but is not paid when the
job is performed. Using their accounting software, the owner
would enter the transaction as: Correct Answers - An Invoice
A company is considered a Going Concern when it: Correct
Answers - Is stable, able to operate and able to meet its
financial obligations.
,A customer paid in advance for a service. They need to cancel
the service. If the business owner wishes to apply that money
towards the customer's next service, the owner would enter that
transaction into their accounting software as: Correct Answers
- A Credit Memo
A form or statement that lists the titles and balances of all ledger
accounts at a given date is known as: Correct Answers - Trial
balance
A listing of the names of the accounts that a company has
identified and made available for recording transactions in its
general ledger is known as a: Correct Answers - Chart of
Accounts
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? Correct Answers - Accounts payable
A schedule that contains all accounts needed to prepare financial
statements is known as: Correct Answers - The General Ledger
A seasonal business like Lou's Landscaping can have decreased
cash during off-season months. Which financial statement would
show the cash inflows and outflows for a particular month?
Correct Answers - Cash Flow Statement
, A trial balance that is prepared after taking into account all the
adjusting entries is known as: Correct Answers - Adjusted Trial
Balance
A trial balance where total debits equal total credits indicates:
Correct Answers - The ledger is in balance.
A way of bookkeeping that tracks which accounts increase and
which decrease for a given transaction is known as: Correct
Answers - Double-entry Accounting
According to the Revenue Recognition Principle, when should a
business recognize its revenue? Correct Answers - When it is
earned
Accounts Payable Correct Answers Amounts to be paid in the
future for goods or services already acquired
Accounts payable would be an example of what kind of
account? Correct Answers - A liability account.
Accounts Receivable Correct Answers Amounts to be received
in the future due to the sale of goods or services
Accounts receivable would be an example of what kind of
account? Correct Answers - An asset account.
Accrual assumption Correct Answers Transactions are
recorded using the accrual basis of accounting, where the
recognition of revenues and expenses arises when earned or
Complete Solutions
3 reasons you could have a difference when reconciling the bank
account Correct 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
5 Bookkeeping Ethics Correct Answers 1. objectivity
2. competence
3. integrity
4. confidentiality
5. professional conduct
A Balance Sheet has four parts: a heading, assets, liabilities, and
______. Correct Answers - equity
A business owner performs a service and is paid when the job is
performed. The owner would then enter this transaction into
accounting software as: Correct Answers - A Sales Receipt
A business owner performs a service but is not paid when the
job is performed. Using their accounting software, the owner
would enter the transaction as: Correct Answers - An Invoice
A company is considered a Going Concern when it: Correct
Answers - Is stable, able to operate and able to meet its
financial obligations.
,A customer paid in advance for a service. They need to cancel
the service. If the business owner wishes to apply that money
towards the customer's next service, the owner would enter that
transaction into their accounting software as: Correct Answers
- A Credit Memo
A form or statement that lists the titles and balances of all ledger
accounts at a given date is known as: Correct Answers - Trial
balance
A listing of the names of the accounts that a company has
identified and made available for recording transactions in its
general ledger is known as a: Correct Answers - Chart of
Accounts
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? Correct Answers - Accounts payable
A schedule that contains all accounts needed to prepare financial
statements is known as: Correct Answers - The General Ledger
A seasonal business like Lou's Landscaping can have decreased
cash during off-season months. Which financial statement would
show the cash inflows and outflows for a particular month?
Correct Answers - Cash Flow Statement
, A trial balance that is prepared after taking into account all the
adjusting entries is known as: Correct Answers - Adjusted Trial
Balance
A trial balance where total debits equal total credits indicates:
Correct Answers - The ledger is in balance.
A way of bookkeeping that tracks which accounts increase and
which decrease for a given transaction is known as: Correct
Answers - Double-entry Accounting
According to the Revenue Recognition Principle, when should a
business recognize its revenue? Correct Answers - When it is
earned
Accounts Payable Correct Answers Amounts to be paid in the
future for goods or services already acquired
Accounts payable would be an example of what kind of
account? Correct Answers - A liability account.
Accounts Receivable Correct Answers Amounts to be received
in the future due to the sale of goods or services
Accounts receivable would be an example of what kind of
account? Correct Answers - An asset account.
Accrual assumption Correct Answers Transactions are
recorded using the accrual basis of accounting, where the
recognition of revenues and expenses arises when earned or
