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INTUIT BOOKKEEPING EXAM QUESTIONS AND ANSWERS 2024/2025
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QUESTIONS AND ANSWERS
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INTUIT BOOKKEEPING EXAM QUESTIONS AND ANSWERS 2024/2025 Four Key Elements of Bookkeeping Ethics Honesty, Objectivity, Confidentiality and Professionalism What is DEALER Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) + Revenue What's is the accounting Equation? Assets = Liabilities + Equity Profit and Loss statement. Shows the company's revenues and expenses during a particular period The Income Statement A financial statement that reports a company's assets, liabilities, and e quity at a specific point in time The Balance Sheet Reports the changes in company equity, from the opening balance to the end of the period balance. The Statement of Equity Reports the sources and uses of cash by a business The Statement of Cash Flow Acco unting 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 If customers pays a t the time of sale you must enter it as a Sales Receipt If customers does not pay at the time of sale you must enter it as a Invoice Once and customer has paid an invoice it goes to Receive payment Receive payment and sales receipt are followed by Bank deposit Step 4 of The Accounting Cycle: Preparing adjusted entries includes Deferrals, Accruals, Missing Transactions, and Tax Adjustments Removing transactions that belong to a different period Deferral Opposite of deferral. Concern future payments or expenses 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 Economic Entity Assumption Only transactions that can be prove n 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 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 When choosing between two solutions, the one that will be least likely to overstate assets and income should be selected. Conservatism Assumption States that an amount can be ignored if its effect on the financial statements is small and not misleading Materiality Principle Once you adopt an accounting principle or method, continue to follow it consist ently in future accounting periods so that the results reported from period to period are comparable Consistency Principle One currency is used throughout all accounting activities. In the US the dollar is the currency used in accounting. When this currenc y is used, inflation is not a consideration in recording finances Monetary Unit Assumption Refers to a business that is stable enough to operate and meet its obligation for the future Going Concern Assumption Revenue is recognized when payment is received and expenses are recognized when paid out Cash -Basis Account Method Revenues are reported when they are earned and expenses are reported when they are incurred Accrual Method of AccountingThe benefits of buying summaries with Stuvia:
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