INTUIT BOOKKEEPING PROFESSIONAL
CERTIFICATE EXAM|| 2024-2025 UPDATE
WITH VERIFIED SOLUTIONS|| LATEST
QUESTIONS AND CORRECT 100% ANSWERS
ALREADY GRADED A+|| ASSURED PASS!!!
What are the 5 Account Types? - ANSWER: - Assets
r r r r r r r r r
- Liabilities
- Equity
- Revenue
- Expenses
What is the accounting formula? - ANSWER: Assets = Liabilities + Equity
r r r r r r r r r r r
What does DEA/LER stand for? - ANSWER: - DebitExpenses
r r r r r r r r r
r and Assets
r
- Credit
r Liabilitie
sEquity
r
r Revenue
What are the 5 steps of the Accounting-Cycle? - ANSWER: 1. Identify
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transactions
r
2. record transactions r
3. run reports r
4. adjusting entries r
,2|P a g e
r r r r
5. close the books r r
What are the 4 Types of financial statements? - ANSWER: - The income statement(aka
r r r r r r r r r r r r r r
P&L statement: Income, COGS, expenses)
r r r r r
- The balance sheet (assets, liabilities, equity)
r r r r r
- The statement of equity
r r r
- The statement of cash flow
r r r r
What are the 4 types of accounting adjustments? - ANSWER: - Deferrals
r r r r r r r r r r r
- Accruals
- Missing Transactions r
- Tax Adjustments
r
What tasks would a bookkeeper do? - ANSWER: - Handle bank feeds and
r r r r r r r r r r r r
reconciles bank accounts, managing accounts receivable/payable, and record
r r r r r r r r
financial transactions
r r
Mary Smith is the owner and operator of Smith Construction. At the end of the
r r r r r r r r r r r r r r
company's accounting period, December 31, 2020, Smith Construction has assets
r r r r r r r r r r
totaling $760,000 and liabilities totaling $240,000.
r r r r r r
Use the accounting equation to calculate what Mary's Owner Equity would be as of
r r r r r r r r r r r r r
December 31, 2020. - ANSWER: - $520,000
r r r r r r r
Mike Anderson is the owner and operator of Anderson Consulting. At the end of
r r r r r r r r r r r r r
2019, the company's assets totaled $500,000 and its liabilities totaled $175,000.
r r r r r r r r r r r
Assuming that over the 2020 fiscal year, assets increased by $120,000 and liabilities
r r r r r r r r r r r r r
increased by $72,000, use the accounting equation to determine what Mike's Owner's
r r r r r r r r r r r r
equity will be as of December 31, 2020? - ANSWER: - $373,000
r r r r r r r r r r r r
, 3|P a g e r r r r
Maria Garcia owns a software consulting firm. At the beginning of 2019, her firm
r r r r r r r r r r r r r
had assets of $800,000 and liabilities of $185,000. Assuming that assets decreasedby
r r r r r r r r r r r r r
$52,000 and liabilities increased by $24,000 during 2020, use the accounting
r r r r r r r r r r r
equation to calculate equity at the end of 2020. - ANSWER: - $539,000
r r r r r r r r r r r r r
The accounting equation can be defined as: - ANSWER: -Assets = Liability +
r r r r r r r r r r r r r
Equity
r
What the company owns or controls and expects to gain value from is defined as: -
r r r r r r r r r r r r r r r
ANSWER: - An Asset
r r r r
What the company owes to others is defined as: - ANSWER: - Liabilities
r r r r r r r r r r r r
The owner's stake in the company is defined as: - ANSWER: - Equity
r r r r r r r r r r r r
A way of bookkeeping that tracks which accounts increase and which decrease fora
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given transaction is known as: - ANSWER: - Double-entry Accounting
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Which of the following best defines a credit as it's used in double-entry
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accounting? - ANSWER: - A decrease in assets/expenses and an increase in
r r r r r r r r r r r r
liabilities/owner's equity and revenue.
r r r r
Which of the following best defines a debit as it's used in double-entry accounting?
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- ANSWER: - An increase in assets/expenses and a decrease in liabilities/owner's
r r r r r r r r r r r
equity and revenue.
r r r
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