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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 separate one is maintained for each class of capital assets






2. Oversees the management of the company/corporation






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






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






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






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






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






8. A business that offers services to the public






9. Formula to calculate the net book value






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






11. 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






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






13. Includes all debt that is due in more than one year






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






15. Taxes are deducted from the income before taxes total on an income statement to come up with this total...






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






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






18. Calculated by subtracting sales from the cogs






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






20. Account maintained for small purchases






21. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale






22. 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






23. 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






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






25. 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






26. All daily transactions are entered through these






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






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






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






30. Are not intended for resale






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






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






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






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






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






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






37. A business that is owned by a single individual






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






39. 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






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






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






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






43. Two types of share capital accounts






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






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






46. A legal document giving official permission to do something






47. First part of the income statement






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






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






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