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Test your basic knowledge |
Bookkeeping Advanced Vocab
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Study First
Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Used to write off the cost of an intangible capital asset
income after taxes
purchase journal
amortization
Cost of Goods Sold
2. Includes the costs of all goods that are complete and ready for sale
reconciling the petty cash account
licenses
finished goods inventory
Income Summary - revenue - expense - capital
3. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
capital assets
land
declining balance method
general ledger trial balance
4. What account is on the cash receipts and sales journals
capital assets
Accounts Receivable Ledger
bank reconciliation statement
accounts receivable
5. Oversees the management of the company/corporation
board of directors
cash disbursements journal
sales journal
land
6. All the checks that have not appeared on the bank statement
daily
accounts receivable
Cost of Goods Sold
outstanding checks
7. Formula to calculate the depreciation for the year
non-operating income
depreciation = net book value * %
service business
bank reconciliation statement
8. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
accounts receivable ledger trial balance
non-operating income
petty cash record
Cost of Goods Sold
9. Includes all debt that is due in more than one year
capital assets
long term liabilities
management
Cost of Goods Sold
10. Has an indefinate life span and is not considered to reduce in value over time
amortization
drawings account
land
Income Summary - revenue - expense - capital
11. When recording the cost of this - all related costs - such as legal - real estate - commissions and other expenses form a part of the original cost
reconciling the petty cash account
proprietor
Sales
land
12. A word - symbol - design - or combination of these used to represent products or services provided by a company. It helps to distinguish products or services of one company from another
current assets
trademarks
sole proprietorship
petty cash record
13. The ledgers are linked to the general ledger by this process
integration
goodwill
net book value = original cost of asset - accumulated depreciation`
board of directors
14. Allows the company to not only maintain accurate records of purchases and payments - but also for future reference and for the audit of the company books at the end of the year
accounts payable ledger
drawings account
purchase journal
trademarks
15. Prepared by sole proprietors and partnerships
statement of owners equity
income statement
board of directors
depreciation = net book value * %
16. A business owned by one or more individuals who are known as shareholders
net income
corporation
accounts receivable ledger trial balance
straight line depreciation
17. When you proceed to reconcile your bank account you will use these two things
net income
trademarks
cash receipts and cash disbursements journals
land
18. Allows companies to see patterns of negligence and shows where the company should take action to collect accounts that are overdue - also enables the company to create an allowance for bad and doubtful accounts whenpreparing the financial statements
current liabilities
declining balance method
merchandising business
accounts receivable ledger trial balance
19. This is reported after the net income on an income statement
management
residual value
non-operating income
net book value = original cost of asset - accumulated depreciation`
20. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
capital assets
outstanding deposits
patents
capital assets
21. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
Accounts Payable Ledger
proprietor
finished goods inventory
Shareholders equity
22. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
accounts payable ledger
management
proprietor
Accounts Receivable Ledger
23. At the end of the year - the bookkeeper will close each partner's __________ account to his/her _______ account and allocate each partner's share of the net income or loss in the business from the _________ ________ Account to his/her ________ accoun
accounts receivable ledger trial balance
land
drawings - capital - Income Summary - capital
Accounts Payable Ledger
24. How often are the accounts payable entries entered into the accounts payable ledger
daily
partnership agreement
petty cash account
accounts receivable
25. The process of comparing the cash plus receipts to the original balance int he account
land
petty cash account
reconciling the petty cash account
land
26. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
straight line depreciation
depreciation = net book value * %
raw material inventory
invoices
27. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
cash disbursements journal
drawings account
partnership
capital assets
28. What account is on the purchases and cash disbursements journals
cash disbursements journal
Accounts payable
express or custom
bookkeeping
29. Account maintained for small purchases
partnership agreement
finished goods inventory
goodwill
petty cash account
30. Usually forms the first entry in the capital assets section of the balance sheet - all of This is grouped together into one amount under the title
(cost of capital asset - residual value) / (expected useful life of capital asset)
income before taxes
land
manufacturing organizations
31. What is used to reference a company's Canadian GST and HST
net income
income after taxes
business number
drawings - capital - Income Summary - capital
32. Two types of share capital accounts
common share accounts - preferred share accounts
depreciation
partnership
land
33. Shareholders equity contains two different types of accounts.... What are they
Share capital accounts - retained earnings
proprietor
service company
drawings - capital - Income Summary - capital
34. Account is reduced by the value of dividends paid to the shareholder
cash receipts and cash disbursements journals
finished goods inventory
capital assets
retained earnings account
35. The process of recording the transactions and financial activities of a business
non-operating income
bookkeeping
general ledger trial balance
gross margin
36. Represents the expected value of the asset at the end of its useful life to the business
residual value
purchase journal
gross margin
retained earnings account
37. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
goodwill
board of directors
accounts receivable ledger
business number
38. Documents issued by companies as evidence of transactions made
raw material inventory
patents
trademarks
invoices
39. An intangible asset that represents the value of a company's name - customer service - staff - and other factors - the buyer of a business is often willing to pay for this asset in addition to the value of its other assets
goodwill
bookkeeping
basic - pro - premium
accounts payable ledger
40. All daily transactions are entered through these
Accounts Payable Ledger
service company
modules
capital assets
41. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
declining balance method
capital assets
trial balance
bank reconciliation statement
42. A business that offers services to the public
invoices
net book value = original cost of asset - accumulated depreciation`
service company
sales journal
43. Lists all vendors to whom your company has purchases
cash receipts and cash disbursements journals
Accounts Payable Ledger
Cost of Goods Sold
daily
44. A business that is owned by a single individual
integration
Cost of Goods Sold
accounts payable and accrued expenses
sole proprietorship
45. What are the three versions of simply accounting
basic - pro - premium
Accounts Receivable Ledger
modules
Cost of Goods Sold
46. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
depreciation = net book value * %
earnings before interest and taxes
Accounts Receivable Ledger
cash disbursements journal
47. Prepared by corporations - similar to a statement of owners equity
statement of retained earnings
accumulated depreciation account
Accounts Receivable Ledger
capital assets
48. Who makes the decision on the amount to keep in the petty cash account
net income
straight line depreciation
outstanding deposits
management
49. What is the formula for calculating straight-line depreciation
express or custom
(cost of capital asset - residual value) / (expected useful life of capital asset)
Sales
capital account
50. Calculated from adding the non operating expenses to the net income
finished goods inventory
income before taxes
intangible capital assets
express or custom