INTUIT BOOKKEEPING EXAM 2024
QUESTIONS AND CORRECT ANSWERS
Four Key Elements of Bookkeeping Ethics ----------CORRECT ANSWER: Honesty,
Objectivity, Confidentiality and Professionalism
What is DEALER ----------CORRECT ANSWER: Dividends + Expenses + Assets =
Liabilities + Owner's Equity (beginning) + Revenue
What's is the accounting Equation? ----------CORRECT ANSWER: Assets = Liabilities + Equity
Profit and Loss statement. Shows the company's revenues and expenses during a particular
period ----------CORRECT ANSWER: The Income Statement
A financial statement that reports a company's assets, liabilities, and equity at a specific point in
time ----------CORRECT ANSWER: The Balance Sheet
Reports the changes in company equity, from the opening balance to the end of the period
balance. ----------CORRECT ANSWER: The Statement of Equity
Reports the sources and uses of cash by a business ----------CORRECT ANSWER: The Statement of Cash Flow
Accounting Cycle ----------CORRECT ANSWER: 1. Analyze and record transactions
- Post transactions to ledger
- Prepare an unadjusted trial balance
- Prepare adjusted entries at the end of the period
- Prepare adjusted trial balance
- Prepare financial statements
If customers pays at the time of sale you must enter it as a ----------CORRECT ANSWER: Sales Receipt
If customers does not pay at the time of sale you must enter it as a ----------CORRECT
ANSWER: Invoice
Once and customer has paid an invoice it goes to ----------CORRECT ANSWER: Receive payment
Receive payment and sales receipt are followed by ----------CORRECT ANSWER: Bank deposit 1 / 2
Step 4 of The Accounting Cycle: Preparing adjusted entries includes ----------CORRECT
ANSWER: Deferrals, Accruals, Missing Transactions, and Tax Adjustments
Removing transactions that belong to a different period ----------CORRECT ANSWER: Deferral
Opposite of deferral. Concern future payments or expenses ----------CORRECT 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 ----------CORRECT 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. ----------CORRECT 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 ----------CORRECT ANSWER: Full Disclosure Principle
When choosing between two solutions, the one that will be least likely to overstate assets and
income should be selected. ----------CORRECT ANSWER: Conservatism Assumption
States that an amount can be ignored if its effect on the financial statements is small and not
misleading ----------CORRECT ANSWER: Materiality Principle
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 ----------
CORRECT ANSWER: Consistency Principle
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 ----------CORRECT ANSWER: Monetary Unit Assumption
Refers to a business that is stable enough to operate and meet its obligation for the future --------
--CORRECT ANSWER: Going Concern Assumption
Revenue is recognized when payment is received and expenses are recognized when paid out ---
-------CORRECT ANSWER: Cash-Basis Account Method
- / 2