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Intuit Bookkeeping Exam: Key Concepts and Practice Questions, Exams of Nursing

Cambridge College of Healthcare & TechnologyNursing

This comprehensive study guide offers a thorough review of key bookkeeping concepts, including ethics, accounting equations, financial statements, and accounting methods. it provides numerous q&a to test understanding and prepare for the intuit bookkeeping exam. The guide covers topics such as assets, liabilities, equity, depreciation, inventory costing methods, and financial ratios, making it a valuable resource for students and professionals.

Typology: Exams

2024/2025

Available from 04/24/2025

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Intuit Bookkeeping Exam / Comprehensive
Study Guide – Expert Strategies, Review of
Key Quizzes, and Practice Questions for
Guaranteed Success / Newest 2025/2026
Four Key Elements of Bookkeeping Ethics - Answer--Honesty, Objectivity,
Confidentiality and Professionalism
What is DEALER - Answer--Dividends + Expenses + Assets = Liabilities + Owner's
Equity (beginning) + Revenue
What's is the accounting Equation? - Answer--Assets = Liabilities + Equity
Profit and Loss statement. Shows the company's revenues and expenses during a
particular period - Answer--The Income Statement
A financial statement that reports a company's assets, liabilities, and equity at a specific
point in time - Answer--The Balance Sheet
Reports the changes in company equity, from the opening balance to the end of the
period balance. - Answer--The Statement of Equity
Reports the sources and uses of cash by a business - Answer--The Statement of Cash
Flow
Accounting Cycle - Answer--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 at the time of sale you must enter it as a - Answer--Sales Receipt
If customers does not pay at the time of sale you must enter it as a - Answer--Invoice
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Download Intuit Bookkeeping Exam: Key Concepts and Practice Questions and more Exams Nursing in PDF only on Docsity!

Intuit Bookkeeping Exam / Comprehensive

Study Guide – Expert Strategies, Review of

Key Quizzes, and Practice Questions for

Guaranteed Success / Newest 2025/

Four Key Elements of Bookkeeping Ethics - Answer--Honesty, Objectivity, Confidentiality and Professionalism What is DEALER - Answer--Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) + Revenue What's is the accounting Equation? - Answer--Assets = Liabilities + Equity Profit and Loss statement. Shows the company's revenues and expenses during a particular period - Answer--The Income Statement A financial statement that reports a company's assets, liabilities, and equity at a specific point in time - Answer--The Balance Sheet Reports the changes in company equity, from the opening balance to the end of the period balance. - Answer--The Statement of Equity Reports the sources and uses of cash by a business - Answer--The Statement of Cash Flow Accounting Cycle - Answer--1. Analyze and record transactions

  1. Post transactions to ledger
  2. Prepare an unadjusted trial balance
  3. Prepare adjusted entries at the end of the period
  4. Prepare adjusted trial balance
  5. Prepare financial statements If customers pays at the time of sale you must enter it as a - Answer--Sales Receipt If customers does not pay at the time of sale you must enter it as a - Answer--Invoice

Once and customer has paid an invoice it goes to - Answer--Receive payment Receive payment and sales receipt are followed by - Answer--Bank deposit Step 4 of The Accounting Cycle: Preparing adjusted entries includes - Answer-- Deferrals, Accruals, Missing Transactions, and Tax Adjustments Removing transactions that belong to a different period - Answer--Deferral Opposite of deferral. Concern future payments or expenses - Answer--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 - Answer--Economic Entity Assumption Only transactions that can be proven 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. - Answer-- 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 - Answer--Full Disclosure Principle When choosing between two solutions, the one that will be least likely to overstate assets and income should be selected. - Answer--Conservatism Assumption States that an amount can be ignored if its effect on the financial statements is small and not misleading - 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 - 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 - Answer--Monetary Unit Assumption Refers to a business that is stable enough to operate and meet its obligation for the future - Answer--Going Concern Assumption Revenue is recognized when payment is received and expenses are recognized when paid out - Answer--Cash-Basis Account Method Revenues are reported when they are earned and expenses are reported when they are incurred - Answer--Accrual Method of Accounting

Non-current liabilities - Answer--Money owed by the business for more than one year, sometimes called long-term liabilities Bonds Payable - Answer--long-term liabilities that represent money lent to the firm that must be paid back Notes Payable - Answer--A current or non-current liability Interest Equation - Answer--Principle x Interest (mulitply by 30/365 to find day) Receivables, loans, or other debits that have virtually no chance of being paid - Answer-

  • Accounts Uncollectible An expense that a business incurs once the repayment of credit previously extended to a customer is estimated to be uncollectible - 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. - Answer--Direct Write-Off Method An estimate of the future amount of bad debt is charged to a reserve account as soon as a sale is made. This is more accurate but complex - Answer--Allowance Method A contra-asset account that has a natural credit balance. Balances decrease with debits and increase with credits - Answer--Accumulated Depreciation Account An expense account on the income statement showing the cost of merchandise to the business - Answer--Cost of Goods Sold (COGS) An inventory system that continuously update the inventory account - Answer-- Perpetual An inventory system that updates the inventory account only at specified intervals - Answer--Periodic Inventory Cost Flows - Answer--FIFO, LIFO, and Average Cost First-In, First-Out (FIFO) - Answer--Method to assign cost to inventory that assumes items are sold in the order acquired; earliest items purchased are the first sold. Last in, First out (LIFO) - Answer--Method to assign cost to inventory that assumes costs for the most recent items purchased are sold first and charged to cost of goods sold.

Average Cost - Answer--All items in the inventory are priced at their average cost Closing Inventory - Answer--Closing Inventory=Cost of Goods Available- COGS COGS equation - Answer--BI(Beginning Inventory) + COGP (Cost of Goods Purchased)

  • EI (Ending Inventory) = COGS Fixing Journals Entries - Answer--Reverse journal entry or reproduce financial statements Details the error and corrections you made to the income statement and balance sheet - Answer--Disclosure PP&E (Plants, Property, and Equipment), Trademarks, and long-term investments - Answer--Non-Current Assets The same amount of depreciation expense is recorded each accounting period, during an asset's servicing life - Answer--Straight-Line Depreciation The expected balance of a particular account type. Assets have a normal debt balance where debts increase and credits decrease. Liabilities have a normal credit balance where debt decrease and credit increase - Answer--The Natural (Normal) Account Balance Gross Pay - Answer--the total amount of an employee's earnings before deductions are taken out Net Pay - Answer--Amount of income left after taxes and deductions have been taken out. Pay Period - Answer--the period covered by a salary payment Employee Information or Payroll - Answer--w-2s, I-9's, 1099's and w-4's Sole Proprietorship - Answer--a business owned and managed by a single individual Partnership - Answer--a business organization owned by two or more persons who agree on a specific division of responsibilities and profits LLC (Limited Liability Company) - Answer--Owned by 1 or more and not personably liable. Can be paid by salary, guaranteed payments, or owners draw. Will show up on balance sheet or P&L depending on filing

One or more but no single person or group owns a nonprofit. A public organization governed by a board of directors. No personal liability, A founder can become a staff employee or executive director in order to get paid a reasonable salary. Paid out of wages and will show on the balance sheet - Answer--Nonprofit Corporation Internal Reports System - Answer--Gathers relevant information from within the organization's own internal operations. External Reports - Answer--reports or other output produced for use by people outside the organization Amoritization - Answer--the reduction of a loan balance through payments made over a period of time Loan Amortization Schedule - Answer--a schedule of the breakdown of each payment between interest and principal as well as the remaining balance after each payment A loan used to finance a company's daily operations - Answer--Working Capital Loan the borrower has pledged some asset as collateral. - Answer--Secured Loan Net assets formula - Answer--Assets - Liabilities The original records that prove that a specific transaction took place - Answer--Source Documents Comparing account listed on source documents report to the total that is listed on the balance sheet - Answer--Report Reconciliation Method Reviewing all existing transactions or source documents to confirm they have actually occurred - Answer--Transactional Reconcillations Percent Change Formula - Answer--Percent Change =(Recent value year−Older value year)/Older value year × horizontal analysis (trend analysis) - Answer--a technique for evaluating a series of financial statement data over a period of time vertical analysis - Answer--reporting an amount on a financial statement as a percentage of another item on the same financial statement Net Income Equation - Answer--Revenues - Expenses A measure of a company's profitability. Shows the percentage of revenue that exceeds COGS - Answer--Gross Profit Margin

Gross profit margin formula - Answer--(Sales Revenue - Cost of Goods Sold) / Sales Revenue Measures how much profit a company makes on a dollar after paying for employees and overhead - Answer--Operating Margin Operating Profit Margin - Answer--operating earnings/sales revenue Used to calculate the percentage of profit a company produces from it total revenue - Answer--Net Profit Margin Net Profit Margin Formula - Answer--Net profit/sales revenue Analyzes short term financial risk - Answer--Current Ratio