Intuit Bookkeeping Professional Certificate
Actual Exam Study Questions with Expert
Graded A+ Answers | Latest Edition
1. What are the 5 Account Types? - ANSWER - Assets
- Liabilities
- Equity
- Revenue
- Expenses
2. What the company owes to others is defined as: - ANSWER - Liabilities
3. The owner's stake in the company is defined as: - ANSWER - Equity
4. A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as: - ANSWER - Double-entry
Accounting
5. Which of the following best defines a credit as it's used in double-entry
accounting? - ANSWER - A decrease in assets/expenses and an increase in
liabilities/owner's equity and revenue.
6. Which of the following best defines a debit as it's used in double-entry
accounting? - ANSWER - An increase in assets/expenses and a decrease in
liabilities/owner's equity and revenue.
7. You purchased inventory from your vendor and paid cash. The accounts
affected are the inventory account and the cash account. In your journal
entry, which account would you debit? - ANSWER - Inventory account
,8. An owner invests $1000 in the company. This transaction impacted the
checking account and the owner's equity account. In your journal entry,
which account do you credit? - ANSWER - Owner's equity account
9. 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? - ANSWER -
Accounts payable
10.The company pays off the credit card bill. This transaction impacts the
accounts payable and the cash accounts. In your journal entry, which
account do you credit? - ANSWER - Cash account
11.Debits are always represented on what side of a T-chart? - ANSWER - The
left.
12.Short-term Investments would be an example of what kind of account? -
ANSWER - An asset account.
13.Accounts payable would be an example of what kind of account? -
ANSWER - A liability account.
14.Accounts receivable would be an example of what kind of account? -
ANSWER - An asset account.
15.True or False: Your client was paid in cash for a service that they provided.
They've asked you to leave it off their financial records. Since you are
employed by the client, you should do what they ask. - ANSWER - False
, 16.A schedule that contains all accounts needed to prepare financial statements
is known as: - ANSWER - The General Ledger
17.Reorganizing journal entries and grouping them by account is known as: -
ANSWER - Posting to the ledger
18.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:
- ANSWER - Chart of Accounts
19.To find the balance of the account types that increase with a debit (asset and
expense accounts), bookkeepers will: - ANSWER - Subtract total credits
from total debits (Debits - Credits)
20.The accounting cycle starts with the: - ANSWER - Analysis of business
transactions
21.After analysis, the business transaction is recorded in the journal in: -
ANSWER - Chronological order
22.A form or statement that lists the titles and balances of all ledger accounts at
a given date is known as: - ANSWER - Trial balance
23.Sydney is entering a transaction in QuickBooks. What are the two steps of
manual accounting that will happen simultaneously as she does this? -
ANSWER - Creating a journal entry and posting to the ledger
24.The digits of the account numbers assigned to general ledger accounts often
have significance. For example, an account number beginning with a "1"
Actual Exam Study Questions with Expert
Graded A+ Answers | Latest Edition
1. What are the 5 Account Types? - ANSWER - Assets
- Liabilities
- Equity
- Revenue
- Expenses
2. What the company owes to others is defined as: - ANSWER - Liabilities
3. The owner's stake in the company is defined as: - ANSWER - Equity
4. A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as: - ANSWER - Double-entry
Accounting
5. Which of the following best defines a credit as it's used in double-entry
accounting? - ANSWER - A decrease in assets/expenses and an increase in
liabilities/owner's equity and revenue.
6. Which of the following best defines a debit as it's used in double-entry
accounting? - ANSWER - An increase in assets/expenses and a decrease in
liabilities/owner's equity and revenue.
7. You purchased inventory from your vendor and paid cash. The accounts
affected are the inventory account and the cash account. In your journal
entry, which account would you debit? - ANSWER - Inventory account
,8. An owner invests $1000 in the company. This transaction impacted the
checking account and the owner's equity account. In your journal entry,
which account do you credit? - ANSWER - Owner's equity account
9. 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? - ANSWER -
Accounts payable
10.The company pays off the credit card bill. This transaction impacts the
accounts payable and the cash accounts. In your journal entry, which
account do you credit? - ANSWER - Cash account
11.Debits are always represented on what side of a T-chart? - ANSWER - The
left.
12.Short-term Investments would be an example of what kind of account? -
ANSWER - An asset account.
13.Accounts payable would be an example of what kind of account? -
ANSWER - A liability account.
14.Accounts receivable would be an example of what kind of account? -
ANSWER - An asset account.
15.True or False: Your client was paid in cash for a service that they provided.
They've asked you to leave it off their financial records. Since you are
employed by the client, you should do what they ask. - ANSWER - False
, 16.A schedule that contains all accounts needed to prepare financial statements
is known as: - ANSWER - The General Ledger
17.Reorganizing journal entries and grouping them by account is known as: -
ANSWER - Posting to the ledger
18.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:
- ANSWER - Chart of Accounts
19.To find the balance of the account types that increase with a debit (asset and
expense accounts), bookkeepers will: - ANSWER - Subtract total credits
from total debits (Debits - Credits)
20.The accounting cycle starts with the: - ANSWER - Analysis of business
transactions
21.After analysis, the business transaction is recorded in the journal in: -
ANSWER - Chronological order
22.A form or statement that lists the titles and balances of all ledger accounts at
a given date is known as: - ANSWER - Trial balance
23.Sydney is entering a transaction in QuickBooks. What are the two steps of
manual accounting that will happen simultaneously as she does this? -
ANSWER - Creating a journal entry and posting to the ledger
24.The digits of the account numbers assigned to general ledger accounts often
have significance. For example, an account number beginning with a "1"
