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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. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
net book value
integration
accounts receivable
net income
2. Amounts owed by the company that are due within one year of the balance sheet date
petty cash account
current liabilities
service business
non-operating income
3. You only have to enter business data once
integrated
board of directors
statement of retained earnings
partnership agreement
4. Net income is also known as this on an income statement
current liabilities
balance sheet
earnings before interest and taxes
net income
5. 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
modules
bank reconciliation statement
Shareholders equity
proprietor
6. A business that offers services to the public
service company
depreciation
Share capital accounts - retained earnings
outstanding checks
7. The ledgers are linked to the general ledger by this process
declining balance method
integration
accounts receivable ledger
income before taxes
8. Formula to calculate the net book value
common share accounts - preferred share accounts
manufacturing organizations
net book value = original cost of asset - accumulated depreciation`
trial balance
9. As a rule these should always be recorded on the balance sheet at cost
drawings account
basic - pro - premium
capital assets
licenses
10. Includes all debt that is due in more than one year
long term liabilities
Accounts payable
depreciation = net book value * %
outstanding checks
11. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
Cost of Goods Sold
straight line depreciation
service business
general ledger trial balance
12. Two types of share capital accounts
residual value
common share accounts - preferred share accounts
capital assets
purchase invoice
13. This is reported after the net income on an income statement
non-operating income
work in process inventory
capital assets
Accounts Payable Ledger
14. All the checks that have not appeared on the bank statement
capital assets
integration
outstanding checks
petty cash account
15. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
statement of owners equity
petty cash record
purchase invoice
depreciation expense account
16. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
depreciation
accounts receivable ledger
accounts payable and accrued expenses
statement of retained earnings
17. Deposits that have not yet been deposited in the bank account
outstanding deposits
Accounts Payable Ledger
income tax expenses - income tax payable
work in process inventory
18. How often are the accounts payable entries entered into the accounts payable ledger
land
daily
capital assets
drawings account
19. Oversees the management of the company/corporation
capital and drawings account
board of directors
depreciation = net book value * %
accounts receivable ledger trial balance
20. The ______ ______ account is used int he closing process for transferring the balances of the _______ and _______ account to the partners ________ accounts at the end of the period
Income Summary - revenue - expense - capital
Accounts Receivable Ledger
earnings before interest and taxes
depreciation expense account
21. The process of comparing the cash plus receipts to the original balance int he account
purchase invoice
cash receipts and cash disbursements journals
petty cash record
reconciling the petty cash account
22. What is used to reference a company's Canadian GST and HST
income before taxes
business number
income after taxes
Accounts Receivable Ledger
23. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
purchase invoice
Cost of Goods Sold
bookkeeping
income after taxes
24. Has an indefinate life span and is not considered to reduce in value over time
drawings account
land
daily
cash receipts journal
25. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
income statement
capital account
declining balance method
accounts receivable ledger trial balance
26. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
(cost of capital asset - residual value) / (expected useful life of capital asset)
purchase journal
declining balance method
depreciation = net book value * %
27. Account maintained for small purchases
petty cash account
general ledger trial balance
accounts receivable ledger trial balance
trademarks
28. 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
patents
Accounts payable
goodwill
statement of retained earnings
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
residual value
integration
straight line depreciation
accounts payable and accrued expenses
30. A business that is owned by a single individual
Accounts Receivable Ledger
sole proprietorship
general ledger trial balance
gross margin
31. A number of owners join together and create one business in which they each own an agreed upon percentage
goodwill
residual value
current assets
partnership
32. Calculated from adding the non operating expenses to the net income
accumulated depreciation account
income before taxes
Sales
business number
33. What account is on the purchases and cash disbursements journals
drawings - capital - Income Summary - capital
general ledger trial balance
accounts receivable ledger trial balance
Accounts payable
34. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
cash disbursements journal
Share capital accounts - retained earnings
service business
partnership
35. Account is reduced by the value of dividends paid to the shareholder
invoices
income tax expenses - income tax payable
retained earnings account
depreciation
36. A partnership has a separate __________ and ____________ account for each partner
capital and drawings account
current liabilities
general ledger trial balance
cash receipts journal
37. Prepared by corporations - similar to a statement of owners equity
management
accumulated depreciation account
statement of retained earnings
licenses
38. Formula to calculate the depreciation for the year
service business
modules
depreciation = net book value * %
patents
39. Information from the purchase invoice is recorded In what journal
income before taxes
purchase journal
Accounts Receivable Ledger
income tax expenses - income tax payable
40. Calculated by subtracting sales from the cogs
petty cash account
straight line depreciation
net income
gross margin
41. Shows how much income has been earned b the business during the time period
trial balance
accumulated depreciation account
income statement
depreciation
42. What is the formula for calculating straight-line depreciation
land
Accounts Receivable Ledger
(cost of capital asset - residual value) / (expected useful life of capital asset)
capital assets
43. What are the three versions of simply accounting
Income Summary - revenue - expense - capital
depreciation expense account
non-operating income
basic - pro - premium
44. First part of the income statement
Sales
daily
drawings account
work in process inventory
45. 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
reconciling the petty cash account
express or custom
capital account
accounts payable ledger
46. 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
residual value
cash receipts journal
Accounts Receivable Ledger
partnership
47. A record of a purchase made by a company - showing the terms and conditions for payment
declining balance method
accounts payable and accrued expenses
purchase invoice
Accounts payable
48. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
bookkeeping
depreciation
Cost of Goods Sold
partnership
49. Information from the sales invoice is recorded In what journal
income after taxes
sales journal
amortization
accounts receivable
50. Includes the costs of all goods that are complete and ready for sale
current assets
finished goods inventory
sales journal
accounts receivable ledger