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ACADEMY BOOKKEEPING PROFESSIONAL
CERTIFICATE: BOOKKEEPING BASICS 2026
EXAM COMPLETE (75) CURRENT TESTING
QUESTIONS AND CORRECT ANSWERS WITH
DETAILED EXPLANATIONS|GUARANTEED
PASS.
BOOKKEEPING
Prepare with confidence using this Intuit Academy Bookkeeping
Professional Certificate: Bookkeeping Basics Exam, designed to
assess foundational bookkeeping and financial recordkeeping skills.
It focuses on accounting principles, journal entries, financial
statements, accounts payable and receivable, and transaction
management. The exam strengthens understanding of essential
bookkeeping practices used in business operations. Suitable for
students and professionals pursuing bookkeeping certification and
accounting fundamentals training.
MULTIPLE CHOICE.
Domain 1: Accounting Foundations and Principles
1. What is the fundamental accounting equation?
o A) Assets = Liabilities – Owner‘s Equity
o B) Assets + Liabilities = Owner’s Equity
, Page 2 of 24
o C) Assets = Liabilities + Owner‘s Equity
o D) Assets + Owner’s Equity = Liabilities
2. The accounting principle that states business and personal
finances must be kept separate is called the:
o A) Consistency Principle
o B) Economic Entity Assumption
o C) Monetary Unit Assumption
o D) Full Disclosure Principle
3. Under the accrual basis of accounting, revenue should be
recorded when:
o A) Cash is received from the customer
o B) The service is performed or goods are delivered,
regardless of when payment is received
o C) The invoice is printed
o D) The end of the fiscal year arrives
4. What is the primary difference between bookkeeping and
accounting?
o A) Bookkeeping is only for large businesses,
accounting is for small businesses
o B) Bookkeeping records and organizes financial
transactions; accounting interprets that
information for decision-making
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o C) Bookkeeping produces financial statements;
accounting does not
o D) There is no difference; the terms are
interchangeable
5. The principle of conservatism in accounting means that
when faced with uncertainty, a bookkeeper should choose
the option that:
o A) Shows higher income
o B) Shows higher assets
o C) Is least likely to overstate assets or income
o D) Maximizes the owner‘s equity
6. The matching principle dictates that:
o A) Debits must equal credits
o B) Expenses be recognized in the same period as
the revenues they helped generate
o C) A business’s financial records be kept separate
from the owner‘s personal records
o D) The same accounting methods be used from period
to period
7. The assumption that a business will continue to operate
indefinitely is known as the:
o A) Periodicity Assumption
ACADEMY BOOKKEEPING PROFESSIONAL
CERTIFICATE: BOOKKEEPING BASICS 2026
EXAM COMPLETE (75) CURRENT TESTING
QUESTIONS AND CORRECT ANSWERS WITH
DETAILED EXPLANATIONS|GUARANTEED
PASS.
BOOKKEEPING
Prepare with confidence using this Intuit Academy Bookkeeping
Professional Certificate: Bookkeeping Basics Exam, designed to
assess foundational bookkeeping and financial recordkeeping skills.
It focuses on accounting principles, journal entries, financial
statements, accounts payable and receivable, and transaction
management. The exam strengthens understanding of essential
bookkeeping practices used in business operations. Suitable for
students and professionals pursuing bookkeeping certification and
accounting fundamentals training.
MULTIPLE CHOICE.
Domain 1: Accounting Foundations and Principles
1. What is the fundamental accounting equation?
o A) Assets = Liabilities – Owner‘s Equity
o B) Assets + Liabilities = Owner’s Equity
, Page 2 of 24
o C) Assets = Liabilities + Owner‘s Equity
o D) Assets + Owner’s Equity = Liabilities
2. The accounting principle that states business and personal
finances must be kept separate is called the:
o A) Consistency Principle
o B) Economic Entity Assumption
o C) Monetary Unit Assumption
o D) Full Disclosure Principle
3. Under the accrual basis of accounting, revenue should be
recorded when:
o A) Cash is received from the customer
o B) The service is performed or goods are delivered,
regardless of when payment is received
o C) The invoice is printed
o D) The end of the fiscal year arrives
4. What is the primary difference between bookkeeping and
accounting?
o A) Bookkeeping is only for large businesses,
accounting is for small businesses
o B) Bookkeeping records and organizes financial
transactions; accounting interprets that
information for decision-making
, Page 3 of 24
o C) Bookkeeping produces financial statements;
accounting does not
o D) There is no difference; the terms are
interchangeable
5. The principle of conservatism in accounting means that
when faced with uncertainty, a bookkeeper should choose
the option that:
o A) Shows higher income
o B) Shows higher assets
o C) Is least likely to overstate assets or income
o D) Maximizes the owner‘s equity
6. The matching principle dictates that:
o A) Debits must equal credits
o B) Expenses be recognized in the same period as
the revenues they helped generate
o C) A business’s financial records be kept separate
from the owner‘s personal records
o D) The same accounting methods be used from period
to period
7. The assumption that a business will continue to operate
indefinitely is known as the:
o A) Periodicity Assumption
