INTUIT BOOKKEEPING EXAM – COMPLETE STUDY GUIDE AND PRACTICE
QUESTIONS WITH ANSWERS A+ VERIFIED LATEST VERSION (20262-2027)
1. Four Key Elements of Bookkeeping Ethics: Honesty, Objectivity, Confidentiality and Profes-
sionalism
2. What is DEALER: Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) + Revenue
3. What's is the accounting Equation?: Assets = Liabilities + Equity
4. Profit and Loss statement. Shows the company's revenues and expenses
during a particular period: The Income Statement
5. A financial statement that reports a company's assets, liabilities, and equity
at a specific point in time: The Balance Sheet
6. Reports the changes in company equity, from the opening balance to the
end of the period balance.: The Statement of Equity
7. Reports the sources and uses of cash by a business: The Statement of Cash Flow
8. Accounting Cycle: 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
9. If customers pays at the time of sale you must enter it as a: Sales Receipt
10. If customers does not pay at the time of sale you must enter it as a: Invoice
11. Once and customer has paid an invoice it goes to: Receive payment
12. Receive payment and sales receipt are followed by: Bank deposit
13. Step 4 of The Accounting Cycle: Preparing adjusted entries includes: Deferrals,
Accruals, Missing Transactions, and Tax Adjustments
14. Removing transactions that belong to a different period: Deferral
15. Opposite of deferral. Concern future payments or expenses: Accruals
16. 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: Economic Entity
Assumption
17. 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.: Reliability Assumption
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, INTUIT BOOKKEEPING EXAM – COMPLETE STUDY GUIDE AND PRACTICE
QUESTIONS WITH ANSWERS A+ VERIFIED LATEST VERSION (20262-2027)
18. 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: Full Disclosure Principle
19. When choosing between two solutions, the one that will be least likely to
overstate assets and income should be selected.: Conservatism Assumption
20. States that an amount can be ignored if its effect on the financial state-
ments is small and not misleading: Materiality Principle
21. Once you adopt an accounting principle or method, continue to follow it
consistently in future accounting periods so that the results reported from
period to period are comparable: Consistency Principle
22. One currency is used throughout all accounting activities. In the US the
dollar is the currency used in accounting. When this currency is used, inflation
is not a consideration in recording finances: Monetary Unit Assumption
23. Refers to a business that is stable enough to operate and meet its obligation
for the future: Going Concern Assumption
24. Revenue is recognized when payment is received and expenses are recog-
nized when paid out: Cash-Basis Account Method
25. Revenues are reported when they are earned and expenses are reported
when they are incurred: Accrual Method of Accounting
26. A combo of cash-basis and accrual methods: Hybrid Accounting
27. Things your company owns that you can easily convert to cash and expect
to do so within the next 12 months: Currents Assets
28. Things your company owns that you expect to have for more than 12
months: Long-term Assets
29. The total you get when adding all current assets and all long-term assets.
This should equal Total Liabilities+Toal Equity: Total Assets
30. A physical asset, such as inventory, vehicle, or a building: Tangible Asset
31. Not a physical asset. Examples would be a copyright, patent, or brand
recoginition: Intangible Asset
32. A signed document containing a written promise to pay a stated sum to a
specified person or bearer at a specified ate or on-demand: Promissory Note
33. Notes Receivable: A current or non-current asset
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QUESTIONS WITH ANSWERS A+ VERIFIED LATEST VERSION (20262-2027)
1. Four Key Elements of Bookkeeping Ethics: Honesty, Objectivity, Confidentiality and Profes-
sionalism
2. What is DEALER: Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) + Revenue
3. What's is the accounting Equation?: Assets = Liabilities + Equity
4. Profit and Loss statement. Shows the company's revenues and expenses
during a particular period: The Income Statement
5. A financial statement that reports a company's assets, liabilities, and equity
at a specific point in time: The Balance Sheet
6. Reports the changes in company equity, from the opening balance to the
end of the period balance.: The Statement of Equity
7. Reports the sources and uses of cash by a business: The Statement of Cash Flow
8. Accounting Cycle: 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
9. If customers pays at the time of sale you must enter it as a: Sales Receipt
10. If customers does not pay at the time of sale you must enter it as a: Invoice
11. Once and customer has paid an invoice it goes to: Receive payment
12. Receive payment and sales receipt are followed by: Bank deposit
13. Step 4 of The Accounting Cycle: Preparing adjusted entries includes: Deferrals,
Accruals, Missing Transactions, and Tax Adjustments
14. Removing transactions that belong to a different period: Deferral
15. Opposite of deferral. Concern future payments or expenses: Accruals
16. 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: Economic Entity
Assumption
17. 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.: Reliability Assumption
1/6
, INTUIT BOOKKEEPING EXAM – COMPLETE STUDY GUIDE AND PRACTICE
QUESTIONS WITH ANSWERS A+ VERIFIED LATEST VERSION (20262-2027)
18. 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: Full Disclosure Principle
19. When choosing between two solutions, the one that will be least likely to
overstate assets and income should be selected.: Conservatism Assumption
20. States that an amount can be ignored if its effect on the financial state-
ments is small and not misleading: Materiality Principle
21. Once you adopt an accounting principle or method, continue to follow it
consistently in future accounting periods so that the results reported from
period to period are comparable: Consistency Principle
22. One currency is used throughout all accounting activities. In the US the
dollar is the currency used in accounting. When this currency is used, inflation
is not a consideration in recording finances: Monetary Unit Assumption
23. Refers to a business that is stable enough to operate and meet its obligation
for the future: Going Concern Assumption
24. Revenue is recognized when payment is received and expenses are recog-
nized when paid out: Cash-Basis Account Method
25. Revenues are reported when they are earned and expenses are reported
when they are incurred: Accrual Method of Accounting
26. A combo of cash-basis and accrual methods: Hybrid Accounting
27. Things your company owns that you can easily convert to cash and expect
to do so within the next 12 months: Currents Assets
28. Things your company owns that you expect to have for more than 12
months: Long-term Assets
29. The total you get when adding all current assets and all long-term assets.
This should equal Total Liabilities+Toal Equity: Total Assets
30. A physical asset, such as inventory, vehicle, or a building: Tangible Asset
31. Not a physical asset. Examples would be a copyright, patent, or brand
recoginition: Intangible Asset
32. A signed document containing a written promise to pay a stated sum to a
specified person or bearer at a specified ate or on-demand: Promissory Note
33. Notes Receivable: A current or non-current asset
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