Updated Intuit Bookkeeping Study Material |Questions With Detailed Answers| Latest Update

Updated Intuit Bookkeeping Study Material |Questions With Detailed Answers| Latest Update In bookkeeping, a signed agreement between two parties, used to document money owed, interest, and payment timeframe is known as what? Correct Answer: 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? Correct Answer: 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? Correct Answer: New Sales Receipt When creating an invoice in Quickbooks Online, which path would you choose to add a new customer? Correct Answer: Customer Add New True or False. The Direct Write-Off method of accounting for "Bad Debt" adheres to the matching principle Correct Answer: False True or False. A perprtual inventory system is one that updates the inventory account at specified intervals Correct Answer: False The inventory cost flow assumption which supposes that inventory flows through the system from oldest to newest is defined as what assumption? Correct Answer: First In, First Out (FIFO) True or False. Inventory errors will self-correct after two years (assuming no other errors occur.) Correct Answer: True True or False. PP&E and expenses are treated the same when it comes to taxes. Correct Answer: False True or False. Depreciation expense is recorded on the balance sheet below PP&E. Correct Answer: False When using QBO software, depreciation expense must be entered as a: Correct Answer: Journal Entry A kind of lease in which ownership of the asset is intended at the end of the lease is called: Correct Answer: A capital lease A capital lease will show up on the profit and loss statement Correct Answer: False In a lease agreement, the party that is paying rent is referred to as the: Correct Answer: 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? Correct Answer: No Aubergine's Antiques took out a capital lease for a moving van to transport heavier antiques. Will they be able to depreciate this equipment? Correct Answer: 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? Correct Answer: 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? Correct Answer: No Why is deferred revenue considered a liability? Correct Answer: 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. Correct Answer: False/it depends Funds in the Sales Tax Payable account can be treated as if they were Sales Revenue Correct Answer: False The following could be payroll deductions on an employee's paystub, expect: Correct Answer: SUTA The following are examples of employee-related items on a paystub, expect: Correct Answer: FUTA; Federal Unemployment Tax Payroll reports are for internal use only Correct Answer: False The process of systematically repaying a loan over time is referred to as: Correct Answer: Amortization If I use the balance sheet approach for reconciling the books each month, all of the following accounts would be reconciled except: Correct Answer: Bank Statement Which of the following is not considered an element of a source document? Correct Answer: Company Logo Which of the following best describes the Transactional Method of Reconciliation? Correct Answer: The method of reviewing existing transactions & source documents to confirm the amount was spent Which of the following best describes the Report Method of Reconciliation? Correct Answer: The method of comparing the amount listed on a source document to the actual ending balance listed on the balance sheet True or False: Horizontal analysis results can be listed as either percentage or dollar amounts. Correct Answer: True In vertical analysis, the gross sales or revenue is the base amount on a P&L statement. Correct Answer: True In vertical analysis, you compare each line item in the financial statement to the base amount as a percentage of that base amount. Correct Answer: True Deferred Revenue is an account that is found in: Correct Answer: Current Liability Long-Term debt securities issued by the company are called: Correct Answer: Bonds Payable Which would be considered deferred revenue? Correct Answer: Cash Inflow A line item on the Statement of Cash Flows shows a loan amount of -$2,000. What does this mean? Correct Answer: The company is paying off a loan for the amount of