2025|2026 INTUIT BOOKKEEPING LATEST EXAM | QUESTIONS WITH 100% VERIFIED ANSWERS

2025|2026 INTUIT BOOKKEEPING LATEST EXAM | QUESTIONS WITH 100% VERIFIED ANSWERS When choosing between two solutions, the one that will be least likely to overstate assets and income should be selected. Correct Answer: Conservatism Assumption States that an amount can be ignored if its effect on the financial statements is small and not misleading Correct Answer: Materiality Principle Once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods so that the results reported from period to period are comparable Correct Answer: Consistency Principle One currency is used throughout all accounting activities. In the US the dollar is the currency used in accounting. When this currency is used, inflation is not a consideration in recording finances Correct Answer: Monetary Unit Assumption Refers to a business that is stable enough to operate and meet its obligation for the future Correct Answer: Going Concern Assumption Revenue is recognized when payment is received and expenses are recognized when paid out Correct Answer: Cash-Basis Account Method Revenues are reported when they are earned and expenses are reported when they are incurred Correct Answer: Accrual Method of Accounting A combo of cash-basis and accrual methods Correct Answer: Hybrid Accounting Things your company owns that you can easily convert to cash and expect to do so within the next 12 months Correct Answer: Currents Assets Things your company owns that you expect to have for more than 12 months Correct Answer: Long-term Assets The total you get when adding all current assets and all long-term assets. This should equal Total Liabilities+Toal Equity Correct Answer: Total Assets A physical asset, such as inventory, vehicle, or a building Correct Answer: Tangible Asset Not a physical asset. Examples would be a copyright, patent, or brand recoginition Correct Answer: Intangible Asset A signed document containing a written promise to pay a stated sum to a specified person or bearer at a specified ate or on-demand Correct Answer: Promissory Note Notes Receivable Correct Answer: A current or non-current asset Notes Payable Correct Answer: A current or non-current liability Interest Equation Correct Answer: Principle x Interest (mulitply by 30/365 to find day) Receivables, loans, or other debits that have virtually no chance of being paid Correct Answer: Accounts Uncollectible An expense that a business incurs once the repayment of credit previously extended to a customer is estimated to be uncollectible Correct Answer: Bad Debt A bad debt is charged to expense as soon as it is apparent that an invoice will not be paid. This is easier for business owners. Correct Answer: Direct Write-Off Method An estimate of the future amount of bad debt is charged to a reserve account as soon as a sale is made. This is more accurate but complex Correct Answer: Allowance Method A contra-asset account that has a natural credit balance. Balances decrease with debits and increase with credits Correct Answer: Accumulated Depreciation Account An expense account on the income statement showing the cost of merchandise to the business Correct Answer: Cost of Goods Sold (COGS) An inventory system that continuously update the inventory account Correct Answer: Perpetual Four Key Elements of Bookkeeping Ethics Correct Answer: Honesty, Objectivity, Confidentiality and Professionalism What is DEALER Correct Answer: Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) + Revenue What's is the accounting Equation? Correct Answer: Assets = Liabilities + Equity Profit and Loss statement. Shows the company's revenues and expenses during a particular period Correct Answer: The Income Statement A financial statement that reports a company's assets, liabilities, and equity at a specific point in time Correct Answer: The Balance Sheet Reports the changes in company equity, from the opening balance to the end of the period balance. Correct Answer: The Statement of Equity Reports the sources and uses of cash by a business Correct Answer: The Statement of Cash Flow Accounting Cycle Correct 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 If customers pays at the time of sale you must enter it as a Correct Answer: Sales Receipt If customers does not pay at the time of sale you must enter it as a Correct Answer: Invoice Once and customer has paid an invoice it goes to Correct Answer: Receive paymen