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






2. 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






3. What are the three versions of simply accounting






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






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






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






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






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






9. 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






10. Documents issued by companies as evidence of transactions made






11. 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






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






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






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






15. 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.






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






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






18. Oversees the management of the company/corporation






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






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






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






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






23. First part of the income statement






24. A word - symbol - design - or combination of these used to represent products or services provided by a company. It helps to distinguish products or services of one company from another






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






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






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






28. Prepared by sole proprietors and partnerships






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






30. Account maintained for small purchases






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






32. A business that is owned by a single individual






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






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






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






36. 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






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






38. 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






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






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






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






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






43. Formula to calculate the net book value






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






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






46. A legal document giving official permission to do something






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






48. When recording the cost of this - all related costs - such as legal - real estate - commissions and other expenses form a part of the original cost






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






50. All daily transactions are entered through these