INTUIT BOOKKEEPING PROFESSSIONAL
CERTIFICATION EXAM WITH STUDY GUIDE
QUESTIONS WITH VERIFIED SOLUTIONS
What are the 5 steps of the Accounting-Cycle? --CORRECT
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? --CORRECT
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? --CORRECT
ANSWER--- Deferrals
- Accruals
Page 1 of 48
,- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? --CORRECT ANSWER---
Handle bank feeds and reconciles bank accounts, managing accounts
receivable/payable, and record financial transactions
What are the 5 Account Types? --CORRECT ANSWER--- Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? --CORRECT ANSWER--Assets =
Liabilities + Equity
What does DEA/LER stand for? --CORRECT ANSWER--- Debit
Expenses and Assets
- Credit
Liabilities
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,Equity
Revenue
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. --CORRECT 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? --CORRECT 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.
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, 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. --CORRECT ANSWER--- $539,000
The accounting equation can be defined as: --CORRECT ANSWER--
- Assets = Liability + Equity
What the company owns or controls and expects to gain value from is
defined as: --CORRECT ANSWER--- An Asset
What the company owes to others is defined as: --CORRECT
ANSWER--- Liabilities
The owner's stake in the company is defined as: --CORRECT
ANSWER--- Equity
A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as: --CORRECT
ANSWER--- Double-entry Accounting
Which of the following best defines a credit as it's used in double-
entry accounting? --CORRECT ANSWER--- A decrease in
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CERTIFICATION EXAM WITH STUDY GUIDE
QUESTIONS WITH VERIFIED SOLUTIONS
What are the 5 steps of the Accounting-Cycle? --CORRECT
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? --CORRECT
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? --CORRECT
ANSWER--- Deferrals
- Accruals
Page 1 of 48
,- Missing Transactions
- Tax Adjustments
What tasks would a bookkeeper do? --CORRECT ANSWER---
Handle bank feeds and reconciles bank accounts, managing accounts
receivable/payable, and record financial transactions
What are the 5 Account Types? --CORRECT ANSWER--- Assets
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? --CORRECT ANSWER--Assets =
Liabilities + Equity
What does DEA/LER stand for? --CORRECT ANSWER--- Debit
Expenses and Assets
- Credit
Liabilities
Page 2 of 48
,Equity
Revenue
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. --CORRECT 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? --CORRECT 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.
Page 3 of 48
, 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. --CORRECT ANSWER--- $539,000
The accounting equation can be defined as: --CORRECT ANSWER--
- Assets = Liability + Equity
What the company owns or controls and expects to gain value from is
defined as: --CORRECT ANSWER--- An Asset
What the company owes to others is defined as: --CORRECT
ANSWER--- Liabilities
The owner's stake in the company is defined as: --CORRECT
ANSWER--- Equity
A way of bookkeeping that tracks which accounts increase and which
decrease for a given transaction is known as: --CORRECT
ANSWER--- Double-entry Accounting
Which of the following best defines a credit as it's used in double-
entry accounting? --CORRECT ANSWER--- A decrease in
Page 4 of 48
