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






3. You only have to enter business data once






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






5. 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






6. A business that offers services to the public






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






8. Formula to calculate the net book value






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






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






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






12. Two types of share capital accounts






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






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






15. A list of all the disbursements made from your petty cash in the box with the receipts and the cash






16. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers






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






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






19. Oversees the management of the company/corporation






20. 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






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






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






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






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






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






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






27. Account maintained for small purchases






28. 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






29. 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






30. A business that is owned by a single individual






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






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






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






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






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






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






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






38. Formula to calculate the depreciation for the year






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






40. Calculated by subtracting sales from the cogs






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






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






43. What are the three versions of simply accounting






44. First part of the income statement






45. 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






46. 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






47. A record of a purchase made by a company - showing the terms and conditions for payment






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






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






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