2024|2025 INTUIT BOOKKEEPING LATEST EXAM | QUESTIONS WITH CORRECT ANSWERS
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Module
INTUIT BOOKKEEPING
Institution
INTUIT BOOKKEEPING
2024|2025 INTUIT BOOKKEEPING LATEST EXAM | QUESTIONS WITH CORRECT ANSWERS
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...
2024|2025 INTUIT BOOKKEEPING LATEST EXAM | QUESTIONS WITH CORRECT ANSWERS
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
Revenues are reported when they are earned and expenses are reported when they are
incurred Correct Answer: Accrual Method of Accounting
A combo of cash-basis and accrual methods Correct Answer: Hybrid Accounting
Things your company owns that you can easily convert to cash and expect to do so within the next 12 months Correct Answer: Currents Assets Things your company owns that you expect to have for more than 12 months Correct Answer: Long-term Assets
The total you get when adding all current assets and all long-term assets. This should equal Total Liabilities+Toal Equity Correct Answer: Total Assets
A physical asset, such as inventory, vehicle, or a building Correct Answer: Tangible Asset
Not a physical asset. Examples would be a copyright, patent, or brand recoginition Correct Answer: Intangible Asset
A signed document containing a written promise to pay a stated sum to a specified person or bearer at a specified ate or on-demand Correct Answer: Promissory Note
Notes Receivable Correct Answer: A current or non-current asset
Notes Payable Correct Answer: A current or non-current liability
Interest Equation Correct Answer: Principle x Interest (mulitply by 30/365 to find day)
Receivables, loans, or other debits that have virtually no chance of being paid Correct Answer: Accounts Uncollectible
An expense that a business incurs once the repayment of credit previously extended to a customer is estimated to be uncollectible Correct Answer: Bad Debt
A bad debt is charged to expense as soon as it is apparent that an invoice will not be paid. This is easier for business owners. Correct Answer: Direct Write-Off Method
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