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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. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
income after taxes
net value
petty cash account
residual value
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
net book value
business number
invoices
Income Summary - revenue - expense - capital
3. What are the three versions of simply accounting
basic - pro - premium
purchase journal
Cost of Goods Sold
express or custom
4. This business purchases products from its vendors for resale to its customers
merchandising business
purchase journal
drawings account
cash disbursements journal
5. Represents the assets on hand - the liabilities owed and the owners equity
non-operating income
statement of retained earnings
work in process inventory
balance sheet
6. This is reported after the net income on an income statement
capital assets
capital assets
non-operating income
proprietor
7. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
trial balance
net income
current assets
accounts payable and accrued expenses
8. Who makes the decision on the amount to keep in the petty cash account
cash disbursements journal
management
straight line depreciation
depreciation = net book value * %
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
Accounts Receivable Ledger
cash receipts and cash disbursements journals
earnings before interest and taxes
service business
10. Documents issued by companies as evidence of transactions made
raw material inventory
service business
trial balance
invoices
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
business number
accounts payable and accrued expenses
purchase invoice
income after taxes
12. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
income after taxes
Cost of Goods Sold
residual value
capital assets
13. In a corporations books - the equity section is referred to as _________ ________
retained earnings account
Shareholders equity
declining balance method
income after taxes
14. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
current assets
land
Accounts Receivable Ledger
corporation
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.
capital assets
work in process inventory
Shareholders equity
capital assets
16. Calculated from adding the non operating expenses to the net income
accounts payable ledger
income before taxes
capital assets
reconciling the petty cash account
17. Used to write off the cost of an intangible capital asset
petty cash account
reconciling the petty cash account
amortization
depreciation
18. Oversees the management of the company/corporation
board of directors
(cost of capital asset - residual value) / (expected useful life of capital asset)
sole proprietorship
Accounts Receivable Ledger
19. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
accounts receivable ledger trial balance
depreciation
long term liabilities
petty cash record
20. Lists all customers and their outstanding balances for non cash or on account sales made
basic - pro - premium
(cost of capital asset - residual value) / (expected useful life of capital asset)
Income Summary - revenue - expense - capital
accounts receivable ledger
21. A separate one is maintained for each class of capital assets
accumulated depreciation account
outstanding deposits
capital assets
common share accounts - preferred share accounts
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
Share capital accounts - retained earnings
partnership
income tax expenses - income tax payable
corporation
23. First part of the income statement
income tax expenses - income tax payable
Sales
depreciation
long term liabilities
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
balance sheet
trademarks
accounts receivable ledger
straight line depreciation
25. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
petty cash record
net value
accounts receivable ledger
goodwill
26. Information from the purchase invoice is recorded In what journal
patents
Accounts Receivable Ledger
statement of retained earnings
purchase 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
net book value = original cost of asset - accumulated depreciation`
goodwill
accounts receivable ledger trial balance
capital assets
28. Prepared by sole proprietors and partnerships
accounts receivable ledger
manufacturing organizations
land
statement of owners equity
29. Includes all debt that is due in more than one year
capital account
business number
cash disbursements journal
long term liabilities
30. Account maintained for small purchases
retained earnings account
petty cash account
drawings account
raw material inventory
31. Companies that transform raw materials into finished goods for sale
long term liabilities
balance sheet
common share accounts - preferred share accounts
manufacturing organizations
32. A business that is owned by a single individual
petty cash account
cash disbursements journal
service business
sole proprietorship
33. Information from the sales invoice is recorded In what journal
common share accounts - preferred share accounts
residual value
reconciling the petty cash account
sales journal
34. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
Accounts Receivable Ledger
retained earnings account
capital assets
Accounts payable
35. How often are the accounts payable entries entered into the accounts payable ledger
modules
daily
net value
land
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
Cost of Goods Sold
accounts payable ledger
accounts receivable ledger
capital account
37. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
Accounts Payable Ledger
partnership
income before taxes
accounts receivable ledger trial balance
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
goodwill
land
service business
integration
39. Shows how much income has been earned b the business during the time period
accounts receivable
capital assets
income statement
work in process inventory
40. Represents the expected value of the asset at the end of its useful life to the business
net book value = original cost of asset - accumulated depreciation`
straight line depreciation
petty cash record
residual value
41. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
accumulated depreciation account
income tax expenses - income tax payable
statement of owners equity
raw material inventory
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
straight line depreciation
land
cash receipts journal
capital assets
43. Formula to calculate the net book value
(cost of capital asset - residual value) / (expected useful life of capital asset)
service business
net book value = original cost of asset - accumulated depreciation`
petty cash account
44. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
cash disbursements journal
gross margin
income before taxes
general ledger trial balance
45. When a merchandising business prepares its income statement it includes a section called.....
residual value
integrated
outstanding checks
Cost of Goods Sold
46. A legal document giving official permission to do something
land
licenses
outstanding checks
statement of owners equity
47. Deposits that have not yet been deposited in the bank account
cash disbursements journal
invoices
outstanding deposits
bank reconciliation statement
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
Accounts Receivable Ledger
land
amortization
finished goods inventory
49. A partnership has a separate __________ and ____________ account for each partner
capital and drawings account
intangible capital assets
Shareholders equity
accounts receivable ledger
50. All daily transactions are entered through these
Accounts Payable Ledger
Accounts Receivable Ledger
modules
integration