Intuit Bookkeeping Exam 2024 Exam 250
Questions And Correct Answers
In bookkeeping, a signed agreement between two parties, used to
document money owed, interest, and payment timeframe is
known as what? - ANSWE--Promissary Note
Rent for Eternal Summer is $1,200/month , but if it is prepaid ,
rent is only $12,000 for the year. If Eternal Summer pays $12,000
on January 1, how would you book this transaction? - ANSWE--
Debit prepaid rent for $12,000 and Credit Cash rent for $12,000
Which path would you select in Quickbooks Online to create a
sales receipt? - ANSWE--New > Sales Receipt
When creating an invoice in Quickbooks Online, which path would
you choose to add a new customer? - ANSWE--Customer > Add
New
True or False. The Direct Write-Off method of accounting for "Bad
Debt" adheres to the matching principle - ANSWE--False
True or False. A perprtual inventory system is one that updates
the inventory account at specified intervals - ANSWE--False
The inventory cost flow assumption which supposes that
inventory flows through the system from oldest to newest is
defined as what assumption? - ANSWE--First In, First Out (FIFO)
, Intuit Bookkeeping Exam 2024 Exam 250
Questions And Correct Answers
True or False. Inventory errors will self-correct after two years
(assuming no other errors occur.) - ANSWE--True
True or False. PP&E and expenses are treated the same when it
comes to taxes. - ANSWE--False
True or False. Depreciation expense is recorded on the balance
sheet below PP&E. - ANSWE--False
When using QBO software, depreciation expense must be
entered as a: - ANSWE--Journal Entry
A kind of lease in which ownership of the asset is intended at the
end of the lease is called: - ANSWE--A capital lease
A capital lease will show up on the profit and loss statement -
ANSWE--False
In a lease agreement, the party that is paying rent is referred to as
the: - ANSWE--Lessee
Big Boss Building Company purchased some construction
equipment to keep up with demand. The new bookkeeper booked
this as an expense , is this correct? - ANSWE--No
, Intuit Bookkeeping Exam 2024 Exam 250
Questions And Correct Answers
Aubergine's Antiques took out a capital lease for a moving van to
transport heavier antiques. Will they be able to depreciate this
equipment? - ANSWE--Yes
Ade just purchased $75 worth of new staplers for her Honey
Helpers Bees business. She wants to book this as a noncurrent
asset. Is that correct way to book it? - ANSWE--No
Jason's Medicinal Juniper Farm recently leased a stump drilling
machine for 12 months on an operating lease. Will he be able to
account for disposition of this equipment at the end of the lease? -
ANSWE--No
Why is deferred revenue considered a liability? - ANSWE--
Because it is technically for goods or services still owed to
customers
In the same state, shoes, bananas, and a haircut would all be
subject to the same sales tax rate. - ANSWE--False/it depends
Funds in the Sales Tax Payable account can be treated as if they
were Sales Revenue - ANSWE--False
The following could be payroll deductions on an employee's
paystub, expect: - ANSWE--SUTA
Questions And Correct Answers
In bookkeeping, a signed agreement between two parties, used to
document money owed, interest, and payment timeframe is
known as what? - ANSWE--Promissary Note
Rent for Eternal Summer is $1,200/month , but if it is prepaid ,
rent is only $12,000 for the year. If Eternal Summer pays $12,000
on January 1, how would you book this transaction? - ANSWE--
Debit prepaid rent for $12,000 and Credit Cash rent for $12,000
Which path would you select in Quickbooks Online to create a
sales receipt? - ANSWE--New > Sales Receipt
When creating an invoice in Quickbooks Online, which path would
you choose to add a new customer? - ANSWE--Customer > Add
New
True or False. The Direct Write-Off method of accounting for "Bad
Debt" adheres to the matching principle - ANSWE--False
True or False. A perprtual inventory system is one that updates
the inventory account at specified intervals - ANSWE--False
The inventory cost flow assumption which supposes that
inventory flows through the system from oldest to newest is
defined as what assumption? - ANSWE--First In, First Out (FIFO)
, Intuit Bookkeeping Exam 2024 Exam 250
Questions And Correct Answers
True or False. Inventory errors will self-correct after two years
(assuming no other errors occur.) - ANSWE--True
True or False. PP&E and expenses are treated the same when it
comes to taxes. - ANSWE--False
True or False. Depreciation expense is recorded on the balance
sheet below PP&E. - ANSWE--False
When using QBO software, depreciation expense must be
entered as a: - ANSWE--Journal Entry
A kind of lease in which ownership of the asset is intended at the
end of the lease is called: - ANSWE--A capital lease
A capital lease will show up on the profit and loss statement -
ANSWE--False
In a lease agreement, the party that is paying rent is referred to as
the: - ANSWE--Lessee
Big Boss Building Company purchased some construction
equipment to keep up with demand. The new bookkeeper booked
this as an expense , is this correct? - ANSWE--No
, Intuit Bookkeeping Exam 2024 Exam 250
Questions And Correct Answers
Aubergine's Antiques took out a capital lease for a moving van to
transport heavier antiques. Will they be able to depreciate this
equipment? - ANSWE--Yes
Ade just purchased $75 worth of new staplers for her Honey
Helpers Bees business. She wants to book this as a noncurrent
asset. Is that correct way to book it? - ANSWE--No
Jason's Medicinal Juniper Farm recently leased a stump drilling
machine for 12 months on an operating lease. Will he be able to
account for disposition of this equipment at the end of the lease? -
ANSWE--No
Why is deferred revenue considered a liability? - ANSWE--
Because it is technically for goods or services still owed to
customers
In the same state, shoes, bananas, and a haircut would all be
subject to the same sales tax rate. - ANSWE--False/it depends
Funds in the Sales Tax Payable account can be treated as if they
were Sales Revenue - ANSWE--False
The following could be payroll deductions on an employee's
paystub, expect: - ANSWE--SUTA
