INTUIT BOOKKEEPING PROFESSIONAL CERTIFICATE REAL
EXAM COMPLETE QUESTIONS AND CORRECT VERIFIED
ANSWERS(DETAILED ANSWERS)|ALREADY GRADED A+
The accounting equation can be defined as: - CORRECT ANSWERS-- Assets = Liability + Equity
What the company owns or controls and expects to gain value from is defined as: - CORRECT
ANSWERS-- An Asset
What the company owes to others is defined as: - CORRECT ANSWERS-- Liabilities
The owner's stake in the company is defined as: - CORRECT ANSWERS-- Equity
A company is considered a Going Concern when it: - CORRECT ANSWERS-- Is stable, able to
operate and able to meet its financial obligations.
Cecilia Tubular sells 1980s themed enamel pins. She has a huge inventory she purchased in 1984 at $0.10
each. They are now worth $1 each. According to the Monetary Unit Assumption, you: - CORRECT
ANSWERS-- Keep the value of the pins at $0.10 each.
If a business is using the Consistency Principle they will: - CORRECT ANSWERS-- Adopt a
specific accounting method and will enter all similar items in the exact same way in the future.
True or False: According to the Periodicity Assumption, companies can only review their financial health
at the end of their fiscal year? - CORRECT ANSWERS-- False
Question 2
A client owns a small vinyl sign printing company called Printing Pros. They completed a print job for a
customer on August 10, but the customer did not pay for the service until October 15.
In which month should the revenue be recognized for this big print job? - CORRECT
ANSWERS-- August
, Printing Pros had another big job to do in April and needed to hire additional help to make their
deadline. The new employee received their first paycheck at the beginning of May.
When should Printing Pros recognize the expense of paying their employee? - CORRECT
ANSWERS-- April
According to the Revenue Recognition Principle, when should a business recognize its revenue? -
CORRECT ANSWERS-- When it is earned
Which of the following best describes the Periodicity Assumption? - CORRECT ANSWERS--
Companies can assume that business activity can be broken up into smaller measurements of time
Which of the following statements would best describe the Matching Principle? - CORRECT
ANSWERS-- Expenses like manufacturing costs or depreciation should be recognized in the same
period as the revenue it helped generate
A way of bookkeeping that tracks which accounts increase and which decrease for a given transaction is
known as: - CORRECT ANSWERS-- Double-entry Accounting
Which of the following best defines a credit as it's used in double-entry accounting? - CORRECT
ANSWERS-- 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? - CORRECT
ANSWERS-- 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? - CORRECT
ANSWERS-- Inventory 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? - CORRECT
ANSWERS-- Owner's equity account
EXAM COMPLETE QUESTIONS AND CORRECT VERIFIED
ANSWERS(DETAILED ANSWERS)|ALREADY GRADED A+
The accounting equation can be defined as: - CORRECT ANSWERS-- Assets = Liability + Equity
What the company owns or controls and expects to gain value from is defined as: - CORRECT
ANSWERS-- An Asset
What the company owes to others is defined as: - CORRECT ANSWERS-- Liabilities
The owner's stake in the company is defined as: - CORRECT ANSWERS-- Equity
A company is considered a Going Concern when it: - CORRECT ANSWERS-- Is stable, able to
operate and able to meet its financial obligations.
Cecilia Tubular sells 1980s themed enamel pins. She has a huge inventory she purchased in 1984 at $0.10
each. They are now worth $1 each. According to the Monetary Unit Assumption, you: - CORRECT
ANSWERS-- Keep the value of the pins at $0.10 each.
If a business is using the Consistency Principle they will: - CORRECT ANSWERS-- Adopt a
specific accounting method and will enter all similar items in the exact same way in the future.
True or False: According to the Periodicity Assumption, companies can only review their financial health
at the end of their fiscal year? - CORRECT ANSWERS-- False
Question 2
A client owns a small vinyl sign printing company called Printing Pros. They completed a print job for a
customer on August 10, but the customer did not pay for the service until October 15.
In which month should the revenue be recognized for this big print job? - CORRECT
ANSWERS-- August
, Printing Pros had another big job to do in April and needed to hire additional help to make their
deadline. The new employee received their first paycheck at the beginning of May.
When should Printing Pros recognize the expense of paying their employee? - CORRECT
ANSWERS-- April
According to the Revenue Recognition Principle, when should a business recognize its revenue? -
CORRECT ANSWERS-- When it is earned
Which of the following best describes the Periodicity Assumption? - CORRECT ANSWERS--
Companies can assume that business activity can be broken up into smaller measurements of time
Which of the following statements would best describe the Matching Principle? - CORRECT
ANSWERS-- Expenses like manufacturing costs or depreciation should be recognized in the same
period as the revenue it helped generate
A way of bookkeeping that tracks which accounts increase and which decrease for a given transaction is
known as: - CORRECT ANSWERS-- Double-entry Accounting
Which of the following best defines a credit as it's used in double-entry accounting? - CORRECT
ANSWERS-- 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? - CORRECT
ANSWERS-- 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? - CORRECT
ANSWERS-- Inventory 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? - CORRECT
ANSWERS-- Owner's equity account
