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INTUIT BOOKKEEPING L ATEST
EXAM | QUESTIONS WITH
CORRECT ANSWERS
Question 1: What are the four key elements of
bookkeeping ethics?
CORRECT ANSWER: Honesty, Objectivity,
Confidentiality and Professionalism
Question 2: What does DEALER stand for?
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: The Income Statement
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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
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Question 9: If a customer pays at the time of sale, you
must enter it as a
CORRECT ANSWER: Sales Receipt
Question 10: If a customer does not pay at the time of
sale, you must enter it as a
CORRECT ANSWER: Invoice
Question 11: Once a customer has paid an invoice, it goes
to
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?
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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, concerning
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