Intuit Bookkeeping (Exam 2025) Questions And Verified Correct Answers., Exams of Nursing

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Intuit Bookkeeping (Exam

2025) Questions And Verified

Correct Answers.

Receivables, loans, or other debits that have virtually no chance of being paid -<<>>Accounts Uncollectible

An expense that a business incurs once the repayment of credit previously extended to a customer is estimated to be uncollectible -<<>>Bad Debt

Amoritization -<<>>the reduction of a loan balance through payments made over a period of time

Loan Amortization Schedule -<<>>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 - <<>>Working Capital Loan

the borrower has pledged some asset as collateral. - <<>>Secured Loan

Net assets formula -<<>>Assets - Liabilities

The original records that prove that a specific transaction took place -<<>>Source Documents

Gross profit margin formula -<<>>(Sales Revenue

• Cost of Goods Sold) / Sales Revenue

Measures how much profit a company makes on a dollar after paying for employees and overhead - <<>>Operating Margin

Operating Profit Margin -<<>>operating earnings/sales revenue

Used to calculate the percentage of profit a company produces from it total revenue -<<>>Net Profit Margin

Net Profit Margin Formula -<<>>Net profit/sales revenue

Analyzes short term financial risk -<<>>Current Ratio

Current Ratio Formula -<<>>Current Ratio = Current Assets / Current Liabilities

Compares total debt to total equity -<<>>Debt to Equity Ratio

Debt to Equity Ratio Formula -<<>>Total Debt / Shareholder's Equity

Accounts Payable Turnover -<<>>Net Credit Purchases/Average Accounts Payable

Accounts Receivable Turnover Ratio -<<>>net credit sales/average net accounts receivable

Cash Flow Coverage Ratio -<<>>Cash Flow Operations/ Total Debt

Current Liability Coverage Ratio -<<>>Net Cash from Operating Activities/ Average Current Liabilities

Cash Flow Margin Ratio -<<>>cash flow from operations/net sales

Key performance indicators (KPIs) - <<>>Quantifiable measures of performance used to gauge progress toward strategic objectives or agreed standards of performance.

8 Step Payroll Process -<<>>1. Choose payroll system

An inventory system that updates the inventory account only at specified intervals -<<>>Periodic

Inventory Cost Flows -<<>>FIFO, LIFO, and Average Cost

First-In, First-Out (FIFO) -<<>>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) -<<>>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 -<<>>All items in the inventory are priced at their average cost

Closing Inventory -<<>>Closing Inventory=Cost of Goods Available- COGS

COGS equation -<<>>BI(Beginning Inventory) + COGP (Cost of Goods Purchased) - EI (Ending Inventory) = COGS

Fixing Journals Entries -<<>>Reverse journal entry or reproduce financial statements

Details the error and corrections you made to the income statement and balance sheet -<<>>Disclosure

PP&E (Plants, Property, and Equipment), Trademarks, and long-term investments -<<>>Non-Current Assets

The same amount of depreciation expense is recorded each accounting period, during an asset's servicing life - <<>>Straight-Line Depreciation

The asset is used more earlier in its life so you would depreciate more in year 2 than year 4 - <<>>Accelerated Depreciation

Four Key Elements of Bookkeeping Ethics - <<>>Honesty, Objectivity, Confidentiality and Professionalism

What is DEALER -<<>>Dividends + Expenses + Assets = Liabilities + Owner's Equity (beginning) + Revenue

What's is the accounting Equation? -<<>>Assets = Liabilities + Equity

If customers does not pay at the time of sale you must enter it as a -<<>>Invoice

Once and customer has paid an invoice it goes to - <<>>Receive payment

Receive payment and sales receipt are followed by - <<>>Bank deposit

Step 4 of The Accounting Cycle: Preparing adjusted entries includes -<<>>Deferrals, Accruals, Missing Transactions, and Tax Adjustments

Removing transactions that belong to a different period - <<>>Deferral

Opposite of deferral. Concern future payments or expenses - <<>>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 -<<>>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. - <<>>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 -<<>>Full Disclosure Principle

When choosing between two solutions, the one that will be least likely to overstate assets and income should be selected. -<<>>Conservatism Assumption

States that an amount can be ignored if its effect on the financial statements is small and not misleading - <<>>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 - <<>>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

The total you get when adding all current assets and all long- term assets. This should equal Total Liabilities+Toal Equity - <<>>Total Assets

A physical asset, such as inventory, vehicle, or a building - <<>>Tangible Asset

Not a physical asset. Examples would be a copyright, patent, or brand recoginition -<<>>Intangible Asset

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 -<<>>Promissory Note

Notes Receivable -<<>>A current or non-current asset

Notes Payable -<<>>A current or non-current liability

Interest Equation -<<>>Principle x Interest (mulitply by 30/365 to find day)

Table that shows the depreciation amount over the span of he asset's life -<<>>Depreciation Schedule

A kind of lease in which transfer of ownership of the asset is not intended -<<>>Operating Lease

A kind of lease in which transfer of ownership of the asset is intended at the end of the lease -<<>>Capital Lease

A company's liabilities that will come due within 1 year - <<>>Current Liabilities

Accounts Payable -<<>>money owed by a company to its creditors.

Income Taxes Payable -<<>>income taxes payable to state and federal governments on the work performed by the employees for that period

Deferred Revenue -<<>>A liability created when a business collects cash from customers in advance of completing a service or delivering a product.

Non-current liabilities -<<>>Money owed by the business for more than one year, sometimes called long-term liabilities

Partnership -<<>>a business organization owned by two or more persons who agree on a specific division of responsibilities and profits

LLC (Limited Liability Company) -<<>>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

1 or more shareholders who aren't personable liable. Must have a board of directors and strict rules for operating. Owners can be paid as an employee or from a distribution of dividends. Pay will show up on the balance sheet if paid salary or on P&L is paid dividends. -<<>>C Corp

Owners who are heavily involved and are also employees and paid reasonable salaries. Pay will show up on both the balance sheet and P&L -<<>>S Corp

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 - <<>>Nonprofit Corporation

Internal Reports System -<<>>Gathers relevant information from within the organization's own internal operations.

External Reports -<<>>reports or other output produced for use by people outside the organization