Intuit Bookkeeping Professional Certificate
TEST AND STUDY GUIDE NEWEST EXAM WITH
QUESTIONS AND DETAILED ANSWERS
GRADED A
What are the 5 Account Types? - ANSWER>>- Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? - ANSWER>>Assets = Liabilities +
Equity
What does DEA/LER stand for? - ANSWER>>- Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
What are the 5 steps of the Accounting-Cycle? - ANSWER>>1. Identify
transactions
2. record transactions
3. run reports
4. adjusting entries
5. close the books
What are the 4 Types of financial statements? - ANSWER>>- The
income statement (aka P&L statement: Income, COGS, expenses)
- The balance sheet (assets, liabilities, equity)
- The statement of equity
,- The statement of cash flow
What are the 4 types of accounting adjustments? - ANSWER>>-
Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? - ANSWER>>- Handle bank feeds
and reconciles bank accounts, managing accounts
receivable/payable, and record financial transactions
Mary Smith is the owner and operator of Smith Construction. At the
end of the company's accounting period, December 31, 2020, Smith
Construction has assets totaling $760,000 and liabilities totaling
$240,000.
Use the accounting equation to calculate what Mary's Owner Equity
would be as of December 31, 2020. - ANSWER>>- $520,000
Mike Anderson is the owner and operator of Anderson Consulting. At
the end of 2019, the company's assets totaled $500,000 and its
liabilities totaled $175,000. Assuming that over the 2020 fiscal year,
assets increased by $120,000 and liabilities increased by $72,000, use
the accounting equation to determine what Mike's Owner's equity will
be as of December 31, 2020? - ANSWER>>- $373,000
Maria Garcia owns a software consulting firm. At the beginning of
2019, her firm had assets of $800,000 and liabilities of $185,000.
Assuming that assets decreased by $52,000 and liabilities increased
by $24,000 during 2020, use the accounting equation to calculate
equity at the end of 2020. - ANSWER>>- $539,000
The accounting equation can be defined as: - ANSWER>>- Assets =
Liability + Equity
, What the company owns or controls and expects to gain value from is
defined as: - ANSWER>>- An Asset
What the company owes to others is defined as: - ANSWER>>- L
iabilities
The owner's stake in the company is defined as: - ANSWER>>- Equity
A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as: - ANSWER>>- Double-
entry Accounting
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.
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.
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>>- I
nventory account
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
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
TEST AND STUDY GUIDE NEWEST EXAM WITH
QUESTIONS AND DETAILED ANSWERS
GRADED A
What are the 5 Account Types? - ANSWER>>- Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? - ANSWER>>Assets = Liabilities +
Equity
What does DEA/LER stand for? - ANSWER>>- Debit
Expenses and Assets
- Credit
Liabilities
Equity
Revenue
What are the 5 steps of the Accounting-Cycle? - ANSWER>>1. Identify
transactions
2. record transactions
3. run reports
4. adjusting entries
5. close the books
What are the 4 Types of financial statements? - ANSWER>>- The
income statement (aka P&L statement: Income, COGS, expenses)
- The balance sheet (assets, liabilities, equity)
- The statement of equity
,- The statement of cash flow
What are the 4 types of accounting adjustments? - ANSWER>>-
Deferrals
- Accruals
- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? - ANSWER>>- Handle bank feeds
and reconciles bank accounts, managing accounts
receivable/payable, and record financial transactions
Mary Smith is the owner and operator of Smith Construction. At the
end of the company's accounting period, December 31, 2020, Smith
Construction has assets totaling $760,000 and liabilities totaling
$240,000.
Use the accounting equation to calculate what Mary's Owner Equity
would be as of December 31, 2020. - ANSWER>>- $520,000
Mike Anderson is the owner and operator of Anderson Consulting. At
the end of 2019, the company's assets totaled $500,000 and its
liabilities totaled $175,000. Assuming that over the 2020 fiscal year,
assets increased by $120,000 and liabilities increased by $72,000, use
the accounting equation to determine what Mike's Owner's equity will
be as of December 31, 2020? - ANSWER>>- $373,000
Maria Garcia owns a software consulting firm. At the beginning of
2019, her firm had assets of $800,000 and liabilities of $185,000.
Assuming that assets decreased by $52,000 and liabilities increased
by $24,000 during 2020, use the accounting equation to calculate
equity at the end of 2020. - ANSWER>>- $539,000
The accounting equation can be defined as: - ANSWER>>- Assets =
Liability + Equity
, What the company owns or controls and expects to gain value from is
defined as: - ANSWER>>- An Asset
What the company owes to others is defined as: - ANSWER>>- L
iabilities
The owner's stake in the company is defined as: - ANSWER>>- Equity
A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as: - ANSWER>>- Double-
entry Accounting
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.
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.
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>>- I
nventory account
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
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
