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Bookkeeping Class by Intuit Exam with correct Answers
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Bookkeeping Class by Intuit Exam with correct Answers
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Bookkeeping Class by Intuit Exam withcorrect Answers
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)
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