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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. 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.






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






3. When you proceed to reconcile your bank account you will use these two things






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






5. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset






6. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years






7. Account is reduced by the value of dividends paid to the shareholder






8. This business does not have a purchase account and no inventory is recorded on the balance sheet






9. A business that is owned by a single individual






10. A specialized journal used to systematically record all cash received from customers payments on account - and from other sources such as cash sales - interest and sales taxes






11. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers






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






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






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






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






16. A record of a purchase made by a company - showing the terms and conditions for payment






17. Must have a useful life of more than one year






18. 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






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






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






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






22. Represents the assets on hand - the liabilities owed and the owners equity






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






24. When a merchandising business prepares its income statement it includes a section called.....






25. A business owned by one or more individuals who are known as shareholders






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






27. Information from the purchase invoice is recorded In what journal






28. Calculated from adding the non operating expenses to the net income






29. It is possible for a balance sheet to be off a few dollars due to rounding - if this happens you would adjust any difference through these two accounts






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






31. This business purchases products from its vendors for resale to its customers






32. Calculated by subtracting sales from the cogs






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






34. 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






35. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc






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






37. All daily transactions are entered through these






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






39. 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






40. Net income is also known as this on an income statement






41. What are the three versions of simply accounting






42. One is maintained for all classes of capital assets






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






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






45. 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






46. Two types of share capital accounts






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






48. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin






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






50. A business that offers services to the public