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






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






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






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






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






6. 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






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






8. What are the three versions of simply accounting






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






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






12. 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






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






14. All daily transactions are entered through these






15. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________






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






17. Lists all customers and their outstanding balances for non cash or on account sales made






18. This is reported after the net income on an income statement






19. The ledgers are linked to the general ledger by this process






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






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






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






23. Two types of share capital accounts






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






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






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






27. What is the formula for calculating straight-line depreciation






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






29. What is used to reference a company's Canadian GST and HST






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






31. Formula to calculate the depreciation for the year






32. Oversees the management of the company/corporation






33. A legal document giving official permission to do something






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






35. First part of the income statement






36. Formula to calculate the net book value






37. Used to write off the cost of an intangible capital asset






38. Documents issued by companies as evidence of transactions made






39. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory






40. Information from the sales invoice is recorded In what journal






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






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






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






44. Account maintained for small purchases






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






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






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






48. A business that is owned by a single individual






49. One is maintained for all classes of capital assets






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