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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. Oversees the management of the company/corporation
board of directors
accumulated depreciation account
reconciling the petty cash account
current liabilities
2. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
business number
patents
cash disbursements journal
merchandising business
3. Includes all debt that is due in more than one year
integration
statement of owners equity
invoices
long term liabilities
4. The two start up methods on simply accountin through the set up wizard
capital assets
express or custom
current assets
Sales
5. Used to write off the cost of an intangible capital asset
amortization
outstanding checks
service business
net income
6. What is used to reference a company's Canadian GST and HST
integrated
business number
capital assets
income tax expenses - income tax payable
7. 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
work in process inventory
patents
petty cash record
trial balance
8. Companies that transform raw materials into finished goods for sale
trial balance
manufacturing organizations
drawings - capital - Income Summary - capital
Accounts Payable Ledger
9. The process of comparing the cash plus receipts to the original balance int he account
balance sheet
cash disbursements journal
partnership
reconciling the petty cash account
10. In a corporations books - the equity section is referred to as _________ ________
bank reconciliation statement
Shareholders equity
petty cash account
sole proprietorship
11. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
capital assets
merchandising business
bookkeeping
current assets
12. 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
Cost of Goods Sold
Accounts Payable Ledger
bank reconciliation statement
Sales
13. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
Accounts Receivable Ledger
basic - pro - premium
gross margin
cash receipts and cash disbursements journals
14. 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
finished goods inventory
non-operating income
Income Summary - revenue - expense - capital
land
15. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
residual value
purchase invoice
income tax expenses - income tax payable
statement of retained earnings
16. 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
Sales
capital assets
accounts payable and accrued expenses
income tax expenses - income tax payable
17. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
net book value = original cost of asset - accumulated depreciation`
income after taxes
accounts receivable ledger
integration
18. Deposits that have not yet been deposited in the bank account
Accounts Receivable Ledger
Shareholders equity
outstanding deposits
net income
19. Shows how much income has been earned b the business during the time period
cash receipts and cash disbursements journals
income statement
service business
capital assets
20. Must have a useful life of more than one year
Income Summary - revenue - expense - capital
Accounts Receivable Ledger
Accounts Receivable Ledger
capital assets
21. First part of the income statement
retained earnings account
Accounts Payable Ledger
proprietor
Sales
22. Assets that have no physical form - but have value and are an integral part of the cost of doing business
land
intangible capital assets
drawings account
accounts receivable ledger
23. What is the formula for calculating straight-line depreciation
long term liabilities
proprietor
(cost of capital asset - residual value) / (expected useful life of capital asset)
business number
24. Shareholders equity contains two different types of accounts.... What are they
earnings before interest and taxes
intangible capital assets
Share capital accounts - retained earnings
capital assets
25. This is reported after the net income on an income statement
non-operating income
net income
income tax expenses - income tax payable
accounts receivable ledger
26. Prepared by sole proprietors and partnerships
modules
general ledger trial balance
Accounts Payable Ledger
statement of owners equity
27. 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
Income Summary - revenue - expense - capital
Cost of Goods Sold
goodwill
service business
28. What are the three versions of simply accounting
Income Summary - revenue - expense - capital
partnership
basic - pro - premium
gross margin
29. Formula to calculate the net book value
net book value = original cost of asset - accumulated depreciation`
trademarks
Accounts Payable Ledger
proprietor
30. A legal document giving official permission to do something
work in process inventory
licenses
earnings before interest and taxes
accounts receivable ledger
31. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
depreciation
retained earnings account
earnings before interest and taxes
outstanding deposits
32. Account is reduced by the value of dividends paid to the shareholder
retained earnings account
bookkeeping
amortization
trial balance
33. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
general ledger trial balance
gross margin
retained earnings account
bookkeeping
34. This business purchases products from its vendors for resale to its customers
merchandising business
raw material inventory
sole proprietorship
basic - pro - premium
35. Net income is also known as this on an income statement
capital assets
accounts receivable ledger
non-operating income
earnings before interest and taxes
36. Calculated from adding the non operating expenses to the net income
retained earnings account
capital assets
capital assets
income before taxes
37. This business does not have a purchase account and no inventory is recorded on the balance sheet
capital assets
service business
Shareholders equity
integration
38. The ledgers are linked to the general ledger by this process
income statement
raw material inventory
Shareholders equity
integration
39. 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
accounts receivable ledger trial balance
(cost of capital asset - residual value) / (expected useful life of capital asset)
sole proprietorship
Sales
40. 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
gross margin
basic - pro - premium
accumulated depreciation account
41. A business owned by one or more individuals who are known as shareholders
sole proprietorship
corporation
service company
partnership agreement
42. All the checks that have not appeared on the bank statement
outstanding checks
integration
capital assets
cash receipts journal
43. Also know as the net book value
outstanding deposits
intangible capital assets
net value
net income
44. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
accounts receivable
business number
Accounts Receivable Ledger
amortization
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
straight line depreciation
capital assets
Shareholders equity
bookkeeping
46. Documents issued by companies as evidence of transactions made
accounts receivable ledger
Accounts payable
invoices
straight line depreciation
47. 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.
finished goods inventory
express or custom
work in process inventory
depreciation expense account
48. When you proceed to reconcile your bank account you will use these two things
income before taxes
capital assets
cash receipts and cash disbursements journals
Accounts Payable Ledger
49. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
capital account
service business
net income
Cost of Goods Sold
50. Lists all customers and their outstanding balances for non cash or on account sales made
accounts receivable ledger
licenses
depreciation = net book value * %
drawings account