INTUIT BOOKKEEPING EXAM COMPREHENSIVE STUDY GUIDE
– EXPERT STRATEGIES, REVIEW OF KEY QUIZZES, AND
PRACTICE QUESTIONS FOR GUARANTEED SUCCESS
Four Key Elements of Bookkeeping Ethics -ANSWER-Honesty, Objectivity, Confidentiality and
Professionalism
What is DEALER -ANSWER-Dividends + Expenses + Assets = Liabilities + Owner's Equity
(beginning) + Revenue
What's is the accounting Equation? -ANSWER-Assets = Liabilities + Equity
Profit and Loss statement. Shows the company's revenues and expenses during a particular
period -ANSWER-The Income Statement
A financial statement that reports a company's assets, liabilities, and equity at a specific
point in time -ANSWER-The Balance Sheet
Reports the changes in company equity, from the opening balance to the end of the period
balance. -ANSWER-The Statement of Equity
Reports the sources and uses of cash by a business -ANSWER-The Statement of Cash Flow
Accounting Cycle -ANSWER-1. Analyze and record transactions
2. Post transactions to ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusted entries at the end of the period
5. Prepare adjusted trial balance
6. Prepare financial statements
, If customers pays at the time of sale you must enter it as a -ANSWER-Sales Receipt
If customers does not pay at the time of sale you must enter it as a -ANSWER-Invoice
Once and customer has paid an invoice it goes to -ANSWER-Receive payment
Receive payment and sales receipt are followed by -ANSWER-Bank deposit
Step 4 of The Accounting Cycle: Preparing adjusted entries includes -ANSWER-Deferrals,
Accruals, Missing Transactions, and Tax Adjustments
Removing transactions that belong to a different period -ANSWER-Deferral
Opposite of deferral. Concern future payments or expenses -ANSWER-Accruals
The Business is a separate entity, so the activities of a business must be kept separate from
any other financial activities of its business owners -ANSWER-Economic Entity Assumption
Only transactions that can be proven should be recorded in accounting practices. And what
this means is that businesses must be able to prove transactions through such things as
receipts, billing statements, invoices, and bank statements. -ANSWER-Reliability Assumption
All info that is relative to the business and is important to a lender or investor has to be
disclosed in financial statements or in the notes of the statements -ANSWER-Full Disclosure
Principle
When choosing between two solutions, the one that will be least likely to overstate assets
and income should be selected. -ANSWER-Conservatism Assumption
– EXPERT STRATEGIES, REVIEW OF KEY QUIZZES, AND
PRACTICE QUESTIONS FOR GUARANTEED SUCCESS
Four Key Elements of Bookkeeping Ethics -ANSWER-Honesty, Objectivity, Confidentiality and
Professionalism
What is DEALER -ANSWER-Dividends + Expenses + Assets = Liabilities + Owner's Equity
(beginning) + Revenue
What's is the accounting Equation? -ANSWER-Assets = Liabilities + Equity
Profit and Loss statement. Shows the company's revenues and expenses during a particular
period -ANSWER-The Income Statement
A financial statement that reports a company's assets, liabilities, and equity at a specific
point in time -ANSWER-The Balance Sheet
Reports the changes in company equity, from the opening balance to the end of the period
balance. -ANSWER-The Statement of Equity
Reports the sources and uses of cash by a business -ANSWER-The Statement of Cash Flow
Accounting Cycle -ANSWER-1. Analyze and record transactions
2. Post transactions to ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusted entries at the end of the period
5. Prepare adjusted trial balance
6. Prepare financial statements
, If customers pays at the time of sale you must enter it as a -ANSWER-Sales Receipt
If customers does not pay at the time of sale you must enter it as a -ANSWER-Invoice
Once and customer has paid an invoice it goes to -ANSWER-Receive payment
Receive payment and sales receipt are followed by -ANSWER-Bank deposit
Step 4 of The Accounting Cycle: Preparing adjusted entries includes -ANSWER-Deferrals,
Accruals, Missing Transactions, and Tax Adjustments
Removing transactions that belong to a different period -ANSWER-Deferral
Opposite of deferral. Concern future payments or expenses -ANSWER-Accruals
The Business is a separate entity, so the activities of a business must be kept separate from
any other financial activities of its business owners -ANSWER-Economic Entity Assumption
Only transactions that can be proven should be recorded in accounting practices. And what
this means is that businesses must be able to prove transactions through such things as
receipts, billing statements, invoices, and bank statements. -ANSWER-Reliability Assumption
All info that is relative to the business and is important to a lender or investor has to be
disclosed in financial statements or in the notes of the statements -ANSWER-Full Disclosure
Principle
When choosing between two solutions, the one that will be least likely to overstate assets
and income should be selected. -ANSWER-Conservatism Assumption
