Intuit Bookkeeping Exam Update Questions and CORRECT ANSWER s Rated A+
Question 1: What are the four key elements of bookkeeping
ethics?
CORRECT ANSWER : Honesty, Objectivity, Confidentiality
and Professionalism
Question 2: What is DEALER?
CORRECT ANSWER : Dividends + Expenses + Assets =
Liabilities + Owner's Equity (beginning) + Revenue
Question 3: What is the accounting equation?
CORRECT ANSWER : Assets = Liabilities + Equity
Question 4: What is a profit and loss statement?
CORRECT ANSWER : Shows the company's revenues and
expenses during a particular period - The Income Statement
Question 5: What is a financial statement that reports a
company's assets, liabilities, and equity at a specific point in time?
CORRECT ANSWER : The Balance Sheet
Question 6: What reports the changes in company equity,
from the opening balance to the end of the period balance?
CORRECT ANSWER : The Statement of Equity
Question 7: What reports the sources and uses of cash by a
business?
CORRECT ANSWER : The Statement of Cash Flow
Question 8: What are the steps of the accounting cycle?
CORRECT 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
Question 9: If a customer pays at the time of sale, how must
you enter it?
CORRECT ANSWER : Sales Receipt
Question 10: If a customer does not pay at the time of sale,
how must you enter it?
CORRECT ANSWER : Invoice
Question 11: Once a customer has paid an invoice, where
does it go?
CORRECT ANSWER: Receive payment
Question 12: What follows receive payment and sales receipt?
CORRECT ANSWER : Bank deposit
Question 13: What does Step 4 of the Accounting Cycle,
preparing adjusted entries, include?
CORRECT ANSWER : Deferrals, Accruals, Missing
Transactions, and Tax Adjustments
Question 14: What is removing transactions that belong to a
different period?
CORRECT ANSWER : Deferral
Question 15: What is the opposite of deferral and concerns
future payments or expenses?
CORRECT ANSWER : Accruals
Question 16: What is the Economic Entity Assumption?
CORRECT ANSWER : 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
Question 17: What is the Reliability Assumption?
CORRECT ANSWER : 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.