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






2. 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






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






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






5. 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






6. Prepared by sole proprietors and partnerships






7. 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.






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






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






10. Formula to calculate the depreciation for the year






11. Also know as the net book value






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






13. In this business there is usually one revenue account for each type of revenue earned - and there are various expense accounts where the costs of operating the business are recorded






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






15. One is maintained for all classes of capital assets






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






17. 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






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






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






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






21. A business that is owned by a single individual






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






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






24. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing






25. All daily transactions are entered through these






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






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






28. You only have to enter business data once






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






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






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






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






33. Signed by all partners in a partneship to establish rules about how the business is going to be run






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






35. Calculated by subtracting sales from the cogs






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






37. A legal document giving official permission to do something






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






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






40. Represents the expected value of the asset at the end of its useful life to the business






41. What are the three versions of simply accounting






42. 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






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






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






45. Documents issued by companies as evidence of transactions made






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






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






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






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






50. Shareholders equity contains two different types of accounts.... What are they