INTUIT BOOKKEEPING EXAM
Questions and Answers
1. Four Key Elements of Bookkeeping Ethics
Answer Honesty, Objectivity, Confidentiality and Profession- alism
2. What is DEALER
Answer Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) + Revenue
3. What's is the accounting Equation?
Answer Assets = Liabilities + Equity
4. Profit and Loss statement. Shows the company's revenues and
expenses during a particular period
Answer The Income Statement
5. A financial statement that reports a company's assets, liabilities,
and equity at a specific point in time
Answer The Balance Sheet
6. Reports the changes in company equity, from the opening balance
to the end of the period balance.
Answer The Statement of Equity
1/
16
,7. Reports the sources and uses of cash by a business
Answer The Statement of Cash Flow
8. Accounting Cycle
Answer 1. Analyze and record transactions
2. Post transactions to ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusted entries at the end of the period
5. Prepare adjusted trial balance
6. Prepare financial statements
9. If customers pays at the time of sale you must enter it as a
Answer Sales Receipt
10. If customers does not pay at the time of sale you must enter it
as a
Answer Invoice
11. Once and customer has paid an invoice it goes to
Answer Receive payment
12. Receive payment and sales receipt are followed by
Answer Bank deposit
2/
16
, 13. Step 4 of The Accounting Cycle; Preparing adjusted entries
includes
Answer Deferrals, Accruals, Missing Transactions, and Tax Adjustments
14. Removing transactions that belong to a different period
Answer Deferral
15. Opposite of deferral. Concern future payments or expenses
Answer Accruals
16. 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
Answer Economic Entity Assumption
17. Only transactions that can be proven should be recorded in
accounting practices. And what this means is that businesses must
be able to prove transactions through such things as receipts, billing
statements, invoices, and bank statements.
Answer Reliability Assumption
18. All info that is relative to the business and is important to a
lender or investor has to be disclosed in financial statements or in
3/
16
Questions and Answers
1. Four Key Elements of Bookkeeping Ethics
Answer Honesty, Objectivity, Confidentiality and Profession- alism
2. What is DEALER
Answer Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) + Revenue
3. What's is the accounting Equation?
Answer Assets = Liabilities + Equity
4. Profit and Loss statement. Shows the company's revenues and
expenses during a particular period
Answer The Income Statement
5. A financial statement that reports a company's assets, liabilities,
and equity at a specific point in time
Answer The Balance Sheet
6. Reports the changes in company equity, from the opening balance
to the end of the period balance.
Answer The Statement of Equity
1/
16
,7. Reports the sources and uses of cash by a business
Answer The Statement of Cash Flow
8. Accounting Cycle
Answer 1. Analyze and record transactions
2. Post transactions to ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusted entries at the end of the period
5. Prepare adjusted trial balance
6. Prepare financial statements
9. If customers pays at the time of sale you must enter it as a
Answer Sales Receipt
10. If customers does not pay at the time of sale you must enter it
as a
Answer Invoice
11. Once and customer has paid an invoice it goes to
Answer Receive payment
12. Receive payment and sales receipt are followed by
Answer Bank deposit
2/
16
, 13. Step 4 of The Accounting Cycle; Preparing adjusted entries
includes
Answer Deferrals, Accruals, Missing Transactions, and Tax Adjustments
14. Removing transactions that belong to a different period
Answer Deferral
15. Opposite of deferral. Concern future payments or expenses
Answer Accruals
16. 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
Answer Economic Entity Assumption
17. Only transactions that can be proven should be recorded in
accounting practices. And what this means is that businesses must
be able to prove transactions through such things as receipts, billing
statements, invoices, and bank statements.
Answer Reliability Assumption
18. All info that is relative to the business and is important to a
lender or investor has to be disclosed in financial statements or in
3/
16
