INTUIT ACADEMY BOOKKEEPING EXAM
NEWEST ACTUAL EXAM WITH COMPLETE
QUESTIONS AND ANSWERS GRADED A |
100% VERIFIED
Conservatism Assumption
When choosing between two solutions, the one that will be
least likely to overstate assets and income should be selected.
Materiality Principle
An amount can be ignored if its effect on the financial
statements is small and not misleading
Consistency 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
,Monetary Unit Assumption
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
Going Concern Assumption
Refers to a business that is stable enough to operate and meet
its obligation for the future
Intangible Asset
Non-Physical asset (copyright, patent, brand recognition, for
example)
Notes Receivable
A current or non-current asset (confirm this is complete and
correct definition
,Promissory Note
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
Notes Payable
A current or non-current liability
Interest Equation
Principle x Interest (mulitply by 30/365 to find day)
Accounts Uncollectible
Receivables, loans, or other debits that have virtually no chance
of being paid
Bad Debt
, An expense that a business incurs once the repayment of credit
previously extended to a customer is estimated to be
uncollectible
Direct Write-Off Method
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.
Allowance 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
Accumulated Depreciation Account
A contra-asset account. Has a natural credit balance. Balances
decrease with debits. Balances increase with credits
Cost of Goods Sold (COGS)
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