INTUIT ACADEMY BOOKKEEPING PROFESSIONAL CERTIFICATE:
BOOKKEEPING BASICS EXAM |2026|2027 UPDATED QUESTIONS WITH
DETAILED VERIFIED ANSWERS | ALREADY GRADED A+
Revenue Recognition Principle - CORRECT ANSWER -Revenue is earned when a service is
performed even if cash is not yet received. Revenue must be recognized in the period when
realized and earned, not necessarily when payment is received.
Matching Principle - CORRECT ANSWER -revenue earned should be matched with the
expenses incurred in earning that revenue and in the same period
Cash Basis Accounting - CORRECT ANSWER -Revenue is recognized when revenue is received
and expenses are recognized when payed out
Accrual Basis Accounting - CORRECT ANSWER -revenue is reported when earned and
expenses are reported when incurred.
Hybrid Accounting Method - CORRECT ANSWER -A combination of cash basis and accrual
basis accounting.
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, Economic Entity Assumption - CORRECT ANSWER -Business and owner are separate entities.
Business and personal finance must be separate.
Reliability Assumption - CORRECT ANSWER -You can only record accounting transactions
that can be verified by a source document (I.E invoices, bill statements, receipts, and bank
statements)
Full Disclosure Assumption - CORRECT ANSWER -All information that is relative to the
business and is important to a lender or investor has to be disclosed in a financial statement
or statement notes
Conservatism Assumption - CORRECT ANSWER -When bookkeepers or accountants are
uncertain and need to determine how to report an item, they should choose the option that
shows less income or asset benefit (Potential losses can be recorded but potential gains can
not)
Materiality Principle - CORRECT ANSWER -An accounting standard can be ignored if the
impact on financial statements is small and not misleading
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BOOKKEEPING BASICS EXAM |2026|2027 UPDATED QUESTIONS WITH
DETAILED VERIFIED ANSWERS | ALREADY GRADED A+
Revenue Recognition Principle - CORRECT ANSWER -Revenue is earned when a service is
performed even if cash is not yet received. Revenue must be recognized in the period when
realized and earned, not necessarily when payment is received.
Matching Principle - CORRECT ANSWER -revenue earned should be matched with the
expenses incurred in earning that revenue and in the same period
Cash Basis Accounting - CORRECT ANSWER -Revenue is recognized when revenue is received
and expenses are recognized when payed out
Accrual Basis Accounting - CORRECT ANSWER -revenue is reported when earned and
expenses are reported when incurred.
Hybrid Accounting Method - CORRECT ANSWER -A combination of cash basis and accrual
basis accounting.
1|Page
, Economic Entity Assumption - CORRECT ANSWER -Business and owner are separate entities.
Business and personal finance must be separate.
Reliability Assumption - CORRECT ANSWER -You can only record accounting transactions
that can be verified by a source document (I.E invoices, bill statements, receipts, and bank
statements)
Full Disclosure Assumption - CORRECT ANSWER -All information that is relative to the
business and is important to a lender or investor has to be disclosed in a financial statement
or statement notes
Conservatism Assumption - CORRECT ANSWER -When bookkeepers or accountants are
uncertain and need to determine how to report an item, they should choose the option that
shows less income or asset benefit (Potential losses can be recorded but potential gains can
not)
Materiality Principle - CORRECT ANSWER -An accounting standard can be ignored if the
impact on financial statements is small and not misleading
2|Page
