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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 business that offers services to the public






2. First part of the income statement






3. You only have to enter business data once






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






6. Calculated by subtracting sales from the cogs






7. Documents issued by companies as evidence of transactions made






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






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






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






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






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






13. Oversees the management of the company/corporation






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






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






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






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






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






19. A business that is owned by a single individual






20. A business owned by one or more individuals who are known as shareholders






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






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






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






24. 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






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






26. Prepared by sole proprietors and partnerships






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






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






30. 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






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






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






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






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






35. Lists all vendors to whom your company has purchases






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






37. One is maintained for all classes of capital assets






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






39. Are not intended for resale






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






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






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






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






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






45. The process of recording the transactions and financial activities of a business






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






47. What account is on the cash receipts and sales journals






48. Two types of share capital accounts






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






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