INTUIT ACADEMY BOOKKEEPING PROFESSIONAL CERTIFICATE: BOOKKEEPING BASICS QUESTIONS AND ANSWERS

INTUIT ACADEMY BOOKKEEPING PROFESSIONAL CERTIFICATE: BOOKKEEPING BASICS QUESTIONS AND ANSWERS The Accounting Principle - Answers You can't mix business and personal assets or expenses. Accounting Equation - Answers Assets = Liabilities + Owner's Equity or Assets - Liabilities = Owner's Equity Expanded Accounting Equation - Answers Assets = Liabilities + Equity + Revenue - Expenses - Dividends The Five Account Types - Answers Assets, Liabilities, Equity, Revenue, Expenses Normal balance of the five account types - Answers Assets- Normal Dr balance Expenses- Normal Dr balance Dividends- Normal Dr balance Equity- Normal Cr balance Revenue- Normal Cr balance General Journal - Answers A list of transactions organized chronologically Posting to the Ledger - Answers transfer transactions entered in the journal to the general ledger and categorize transactions by account Accounting Cycle - Answers a collective process of identifying, analyzing, and recording the accounting events of a company Steps in the Accounting Cycle - Answers 1. Collect, analyze, and post transactions to the Journal 2. Post transactions to the ledger 3. Prepare an unadjusted trial balance 4. Prepare adjusting entries at period end 5. Prepare an adjusted trial balance 6. Prepare financial statements Accounting adjustments - Answers A business transaction that has not yet been included in the accounting records. I.E Deferrals, depreciation, and accruals income statement (profit and loss statement) - Answers A type of financial statement that describes a firm's revenues and expenses and indicates whether the firm has earned a profit or suffered a loss during a given period.