INTUIT ACADEMY BOOKKEEPING
PROFESSIONAL CERTIFICATE:
LIABILITIES AND EQUITY CORRECT
100%
Accounting Equation - ANSWERAssets = Liabilities + Owner's Equity
Current Liabilities - ANSWERWill be paid in 1 year (I.E Accounts payable, Payroll and
benefits Liabilites, Lines of Credit, Credit Cards, Income Tax Liabilities, Deferred
Revenue)
Noncurrent Liabilities - ANSWERDue in 1 year or more (I.E Long term loans; Notes
Payable: mortgage, car loan, promissory loan; Bonds payable; Deferred income tax)
Liquidity - ANSWERThe ability to generate sufficient current assets to pay current
liabilities
Solvency - ANSWERAbility to meet company obligations in future
Debt to Equity Ratio - ANSWERTracks increases and decreases in liabilities as a
percentage of equity.
Accounts Receivable Turnover Rate - ANSWERHow fast accounts receivable are
collected
SUTA (State Unemployment Tax Act) - ANSWERA tax paid by employers to fund state
ran unemployment programs
Fair Labor Standards Acts/FLSA - ANSWEREstablishes minimum wage, overtime pay,
record keeping, and youth employment standards
OASDI/Social Security - ANSWEROld age, Survivors, and Disability insurance tax (part
of FICA)
State Disabilities Insurance - ANSWERA payroll tax to fund employees injured on the
job
HI/Medicare - ANSWERMedicare tax is also called hospital insurance(part of FICA)
8 Steps to Payroll - ANSWER1. Choose a payroll system, 2. Create a payroll policy, 3.
Gathering Employee Information, 4. Setting Up Direct Deposit, 5. Setup Time Tracking
PROFESSIONAL CERTIFICATE:
LIABILITIES AND EQUITY CORRECT
100%
Accounting Equation - ANSWERAssets = Liabilities + Owner's Equity
Current Liabilities - ANSWERWill be paid in 1 year (I.E Accounts payable, Payroll and
benefits Liabilites, Lines of Credit, Credit Cards, Income Tax Liabilities, Deferred
Revenue)
Noncurrent Liabilities - ANSWERDue in 1 year or more (I.E Long term loans; Notes
Payable: mortgage, car loan, promissory loan; Bonds payable; Deferred income tax)
Liquidity - ANSWERThe ability to generate sufficient current assets to pay current
liabilities
Solvency - ANSWERAbility to meet company obligations in future
Debt to Equity Ratio - ANSWERTracks increases and decreases in liabilities as a
percentage of equity.
Accounts Receivable Turnover Rate - ANSWERHow fast accounts receivable are
collected
SUTA (State Unemployment Tax Act) - ANSWERA tax paid by employers to fund state
ran unemployment programs
Fair Labor Standards Acts/FLSA - ANSWEREstablishes minimum wage, overtime pay,
record keeping, and youth employment standards
OASDI/Social Security - ANSWEROld age, Survivors, and Disability insurance tax (part
of FICA)
State Disabilities Insurance - ANSWERA payroll tax to fund employees injured on the
job
HI/Medicare - ANSWERMedicare tax is also called hospital insurance(part of FICA)
8 Steps to Payroll - ANSWER1. Choose a payroll system, 2. Create a payroll policy, 3.
Gathering Employee Information, 4. Setting Up Direct Deposit, 5. Setup Time Tracking
