INTUIT BOOKKEEPING LATEST

INTUIT BOOKKEEPING LATEST

EXAM | QUESTIONS WITH

CORRECT ANSWER S

Question 1: What are the 8 steps of the Payroll Process?

CORRECT ANSWER : 1. Choose payroll system 2. Create

Payroll Policy 3. Gather Employee Info 4. Setup Direct Deposit 5. Establish Time Tracking System 6. Collect Employee Time Sheets 7. Approve and Submit Employee Payroll 8. Report and Update Payroll records

Question 2: What is Accelerated Depreciation?

CORRECT ANSWER : The asset is used more earlier in its

life. Depreciate more in year 2 than year 4

Question 3: What are the steps of the Accounting Cycle?

CORRECT ANSWER : 1. Analyze and record transactions 2.

Post transactions to ledger 3. Prepare an unadjusted trial balance 4. Prepare adjusted entries at end of period 5. Prepare adjusted trial balance 6. Prepare financial statements

Question 4: What is the Accounting Equation?

CORRECT ANSWER : Assets = Liabilities + Equity -

Foundation of the Balance Sheet

Question 5: What is Accounts Payable?

CORRECT ANSWER : money owed by a company to its

creditors.

Question 6: What is Accounts Payable Turnover?

CORRECT ANSWER : Net Credit Purchases/Average

Accounts Payable

Question 7: What is Accounts Receivable Turnover Ratio?

CORRECT ANSWER : net credit sales/average net accounts

receivable

Question 8: What are Accounts Uncollectible?

CORRECT ANSWER : Receivables, loans, or other debits

that have virtually no chance of being paid

Question 9: What is the Accrual Accounting Method?

CORRECT ANSWER : Revenue Recognition 1. record

rev/exp when they happen (when they are earned or incurred, not when the cash is received or paid) 2. Deferred Rev (unearned rev) = Advance payment. Not recognized until service completed. Matching Principle 1. Exp recorded in same period as the revenue related revenue. More accurate picture of financial condition, than cash-basis method Required by GAAP more likely to be compliant Large companies usual

Question 10: What is the Accrual Method of Accounting?

CORRECT ANSWER : Revenues are reported when they are

earned and expenses are reported when they are incurred

Question 11: What are Accruals?

CORRECT ANSWER : -Opposite of deferral. -Concern future

payments or expenses When a product or service has been delivered to a customer and the customer has yet to pay, the revenue has been earned and should be reflected on the books.This is accomplished through an accrual adjusting entry.

Question 12: What is an Accumulated Depreciation Account?

CORRECT ANSWER : A contra-asset account. Has a natural

credit balance. Balances decrease with debits. Balances increase with credits

Question 13: What does the adjusting entries transcript

describe?

CORRECT ANSWER : To ensure that financial statements

reflect all revenues earned and expenses incurred during the accounting period, adjusting entries are made on the last day of an accounting period. Adjusting entries are necessary to include business transactions that are not yet recorded in the accounting records. The entries made include capturing transactions that have not yet been recorded on the books that belong in the accounting period, such as expenses incurred but not yet paid or recorded, revenue that was received in advance of delivering goods or services, and adjusting for prepayments of expenses, such as insurance premiums. Tax adjustments are also commonly made once per year as part of adjusting entries. The process of making adjusting entries, also known as adjusting journal entries, involves analyzing the current account balance, determining the desired balance