INTUIT BOOKKEEPING EXAM<\/p>\n\n\n\n
In bookkeeping, a signed agreement between two parties, used
to document money owed, interest, and payment timeframe is
known as what? – ANSWER- Promissary Note
Rent for Eternal Summer is $1,200\/month , but if it is prepaid ,
rent is only $12,000 for the year. If Eternal Summer pays
$12,000 on January 1, how would you book this transaction? –
ANSWER- Debit prepaid rent for $12,000 and Credit Cash rent
for $12,000
Which path would you select in Quickbooks Online to create a
sales receipt? – ANSWER- New > Sales Receipt
When creating an invoice in Quickbooks Online, which path
would you choose to add a new customer? – ANSWER\u0002Customer > Add New
True or False. The Direct Write-Off method of accounting for
“Bad Debt” adheres to the matching principle – ANSWER- False<\/p>\n\n\n\n
True or False. A perprtual inventory system is one that updates
the inventory account at specified intervals – ANSWER- False
The inventory cost flow assumption which supposes that
inventory flows through the system from oldest to newest is
defined as what assumption? – ANSWER- First In, First Out
(FIFO)
True or False. Inventory errors will self-correct after two years
(assuming no other errors occur.) – ANSWER- True
True or False. PP&E and expenses are treated the same when it
comes to taxes. – ANSWER- False
True or False. Depreciation expense is recorded on the balance
sheet below PP&E. – ANSWER- False
When using QBO software, depreciation expense must be
entered as a: – ANSWER- Journal Entry
A kind of lease in which ownership of the asset is intended at
the end of the lease is called: – ANSWER- A capital lease<\/p>\n\n\n\n
A capital lease will show up on the profit and loss statement –
ANSWER- False
In a lease agreement, the party that is paying rent is referred to
as the: – ANSWER- Lessee
Big Boss Building Company purchased some construction
equipment to keep up with demand. The new bookkeeper
booked this as an expense , is this correct? – ANSWER- No
Aubergine’s Antiques took out a capital lease for a moving van
to transport heavier antiques. Will they be able to depreciate this
equipment? – ANSWER- Yes
Ade just purchased $75 worth of new staplers for her Honey
Helpers Bees business. She wants to book this as a noncurrent
asset. Is that correct way to book it? – ANSWER- No
Jason’s Medicinal Juniper Farm recently leased a stump drilling
machine for 12 months on an operating lease. Will he be able to
account for disposition of this equipment at the end of the lease?<\/p>\n\n\n\n
Why is deferred revenue considered a liability? – ANSWER\u0002Because it is technically for goods or services still owed to
customers
In the same state, shoes, bananas, and a haircut would all be
subject to the same sales tax rate. – ANSWER- False\/it depends
Funds in the Sales Tax Payable account can be treated as if they
were Sales Revenue – ANSWER- False
The following could be payroll deductions on an employee’s
paystub, expect: – ANSWER- SUTA
The following are examples of employee-related items on a
paystub, expect: – ANSWER- FUTA; Federal Unemployment
Tax
Payroll reports are for internal use only – ANSWER- False
The process of systematically repaying a loan over time is
referred to as: – ANSWER- Amortization<\/p>\n\n\n\n