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: Profit and Loss statement. Shows the company's
revenues and expenses during a particular period. What is it called?
CORRECT ANSWER : The Income Statement
Question 5: A financial statement that reports a company's
assets, liabilities, and equity at a specific point in time. What is it called?
CORRECT ANSWER : The Balance Sheet
Question 6: Reports the changes in company equity, from the
opening balance to the end of the period balance. What is it called?
CORRECT ANSWER : The Statement of Equity
Question 7: Reports the sources and uses of cash by a
business. What is it called?
CORRECT ANSWER : The Statement of Cash Flow
Question 8: What are the steps of the Accounting Cycle?
CORRECT ANSWER : 1. Analyze and record transactions
- 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 customers pay at the time of sale you must
enter it as a what?
CORRECT ANSWER : Sales Receipt
Question 10: If a customer does not pay at the time of sale
you must enter it as a what?
CORRECT ANSWER : Invoice
Question 11: Once a customer has paid an invoice it goes to
what?
CORRECT ANSWER : Receive payment
Question 12: Receive payment and sales receipt are followed
by what?
CORRECT ANSWER : Bank deposit
Question 13: Step 4 of The Accounting Cycle: Preparing adjusted entries includes what?
CORRECT ANSWER : Deferrals, Accruals, Missing
Transactions, and Tax Adjustments
Question 14: What is removing transactions that belong to a
different period called?
CORRECT ANSWER : Deferral
Question 15: What is the opposite of deferral, concerning
future payments or expenses?
CORRECT ANSWER : Accruals
Question 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. What is this called?
CORRECT ANSWER : Economic Entity Assumption
Question 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. What is this called?