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Bookkeeping Advanced Vocab

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. Lists all vendors to whom your company has purchases






2. Account used to record the net income that is retained in the business at the end of the year






3. How often are the accounts payable entries entered into the accounts payable ledger






4. Includes the costs of all products being made by a company that are not yet complete and ready to sell. This may include labor and overhead that have been invested in their production to date.






5. Deposits that have not yet been deposited in the bank account






6. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset






7. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention






8. A partnership has a separate __________ and ____________ account for each partner






9. 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






10. All daily transactions are entered through these






11. Who makes the decision on the amount to keep in the petty cash account






12. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax






13. Oversees the management of the company/corporation






14. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement






15. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared






16. Prepared by corporations - similar to a statement of owners equity






17. What account is on the purchases and cash disbursements journals






18. Companies that transform raw materials into finished goods for sale






19. In a corporations books - the equity section is referred to as _________ ________






20. Each subsidiary ledger has this prepared to ensure that the credit/debit columns balance and are then compared with the control account in the general ledger






21. Formula to calculate the net book value






22. A number of owners join together and create one business in which they each own an agreed upon percentage






23. Has an indefinate life span and is not considered to reduce in value over time






24. Amounts owed by the company that are due within one year of the balance sheet date






25. You only have to enter business data once






26. Includes the costs of all goods that are complete and ready for sale






27. Shows how much income has been earned b the business during the time period






28. A separate one is maintained for each class of capital assets






29. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset






30. 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






31. The process of comparing the cash plus receipts to the original balance int he account






32. A legal document giving official permission to do something






33. Consist of physical assets and non-physical or intangible properties






34. As a rule these should always be recorded on the balance sheet at cost






35. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






36. The two start up methods on simply accountin through the set up wizard






37. In this business there is usually one revenue account for each type of revenue earned - and there are various expense accounts where the costs of operating the business are recorded






38. Listed on the balance sheet are assets that can be turned into cash within one year






39. Must be held for use in the production of goods and/or services






40. All the checks that have not appeared on the bank statement






41. Assets that have no physical form - but have value and are an integral part of the cost of doing business






42. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes






43. One is maintained for all classes of capital assets






44. 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






45. Shareholders equity contains two different types of accounts.... What are they






46. Signed by all partners in a partneship to establish rules about how the business is going to be run






47. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______






48. 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






49. Prepared for each bank account - each month - to allow companies to verify that the company's bank account is accurate and all the items on the Statement of Account belong to the company and are reflected in the company records






50. Two types of share capital accounts