Bookkeeping Class by Intuit Questions with Answers
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Bookkeeping Class by Intuit
Institution
Bookkeeping Class By Intuit
Bookkeeping Class by Intuit
Bookkeepers typically... - Answer- Record financial transactions, reconcile bank accounts, manage accounts receivable, manage accounts payable, work with tax preparers and assist with tax compliance, and generate financial statements.
As a bookkeeper what would Hon...
Bookkeeping Class by Intuit
Bookkeepers typically... - Answer- Record financial transactions, reconcile bank
accounts, manage accounts receivable, manage accounts payable, work with tax
preparers and assist with tax compliance, and generate financial statements.
As a bookkeeper what would Honesty mean? - Answer- Reporting financial data
accordingly and timley, owning up to and trying ti fix any mistakes, and being open
and transparent with clients about their business.
As a bookkeeper what would Objectivity mean? - Answer- Not taking any jobs/
clients that could pose conflict of interest, not allowing outside parties to influence
findings, not letting personal bias get in the way of your performance.
As a bookkeeper what would Confidentiality mean? - Answer- Not discussing
business details outside of the job and NEVER using inside information for personal
gain.
As a bookkeeper what would Profesionalism mean? - Answer- Being considerate of
clients needs/ time, avoiding personal/profesional activities that could bring shame to
profession/business, maintaining proper credentials, and keeping skills through
continuing education.
What is the Accounting Equation - Answer- Assets=Liability+Equity
What are some examples of a Liability? - Answer- Morgage,(money owed to a
lender)
Credit Card(s)- (money borrowed from bank with expectation of paying it back)
Payroll or sales tax owed to a government-(most business will owe one or more
types of taxes to federal, state, or local governments)
What are some examples of an Asset? - Answer- Accounts Receivable-(money
owed to the business by customers)
Investments in other companies-( potentially sell for cash)
What are some examples of Equity? - Answer- Money invested into the company by
one or more owners
Double-Entry Accounting - Answer- A common way to record transactions records
which accounts increase and decrease. Recorded in debit and credit columns.
(Totals HAVE to be balanced)
What side can debits and credits be found on? - Answer- Debits are on the left
Credits are on the right
How do you know if something is a Debit or a Credit? - Answer- Ask yourself, What
kind of account are we looking at? and Is the balance increasing or decreasing?
, What are the 5 account types? - Answer- Assets
Liability
Equity
Revenue
Expenses
What is the expanded Accounting Equation? - Answer- {Assets=Liabilities+Equity}+
[Revenues-Expences]
{Balance Sheet} [Income statement]
{Assets+Expenses}=[Liabilities+Equity+Revenue]
How do Debits and Credits work in an ASSETS Account? - Answer- Debits are an
increase and Credits are a decrease
How do Debits and Credits work in a LIABILITIES Acount? - Answer- Debits are a
decrease and Credits are an increase
How do Debits and Credits work in an EQUITY Acount? - Answer- Debits are a
decrease and Credits are an increase
What does the acronym DEALER mean? - Answer- to increase an account you will
Debit and Expense or Asset account but credit a Liability, Equity, or Revenue
account.
How would you record a $100 cash payment to the tractor store? - Answer- We
would record it as a CREDIT because it's DECREASING an ASSET (in this case
cash)
How are credits used in double entry - Answer- Decrease in assets/ expenses.
Increase liabilities/ equity
How are debits used in double entry - Answer- Increase assets/ expenses. Decrease
liabilities/ equity.
What is the Chart of Accounts? - Answer- A way to organize the accounts, their
purpose, and account numbers. It's organized by type of account. (First number of
account goes with what account type ex. Assets start with a 1, Liabilities start with a
2, ect.)
What is the first step to the Accounting Cycle? - Answer- Collect and analyze
transactions. (Receipts, Invoices, Bank Statements)
What is the second step to the Accounting Cycle? - Answer- Record/ Post
transactions to the ledger.
What is the third step to the Accounting Cycle? - Answer- Prepare an UNadjusted
Trial Balance.
What is the fourth step to the Accounting Cycle? - Answer- Prepare adjusting entries
at the end of the period.
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