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Test your basic knowledge |
Bookkeeping Advanced Vocab
Start Test
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. The process of comparing the cash plus receipts to the original balance int he account
earnings before interest and taxes
net book value
reconciling the petty cash account
bookkeeping
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
capital assets
goodwill
amortization
integrated
3. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
modules
petty cash record
Accounts Payable Ledger
corporation
4. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
drawings - capital - Income Summary - capital
management
Accounts Receivable Ledger
modules
5. Two types of share capital accounts
net book value = original cost of asset - accumulated depreciation`
accounts payable and accrued expenses
gross margin
common share accounts - preferred share accounts
6. Deposits that have not yet been deposited in the bank account
basic - pro - premium
Shareholders equity
capital assets
outstanding deposits
7. A partnership has a separate __________ and ____________ account for each partner
daily
capital and drawings account
straight line depreciation
income before taxes
8. This business does not have a purchase account and no inventory is recorded on the balance sheet
licenses
capital assets
statement of owners equity
service business
9. A business that is owned by a single individual
intangible capital assets
sole proprietorship
land
work in process inventory
10. What is used to reference a company's Canadian GST and HST
business number
accounts receivable ledger
bank reconciliation statement
accounts receivable
11. Represents the assets on hand - the liabilities owed and the owners equity
accumulated depreciation account
intangible capital assets
capital assets
balance sheet
12. Assets that have no physical form - but have value and are an integral part of the cost of doing business
intangible capital assets
residual value
cash receipts and cash disbursements journals
integrated
13. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
Accounts Payable Ledger
land
express or custom
current assets
14. Account maintained for small purchases
Share capital accounts - retained earnings
petty cash account
petty cash record
Accounts payable
15. 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
integration
bank reconciliation statement
Accounts Payable Ledger
net book value
16. Information from the sales invoice is recorded In what journal
capital assets
service business
sales journal
general ledger trial balance
17. Includes all debt that is due in more than one year
long term liabilities
outstanding checks
capital assets
Cost of Goods Sold
18. Listed on the balance sheet are assets that can be turned into cash within one year
integrated
drawings - capital - Income Summary - capital
current assets
work in process inventory
19. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
capital account
intangible capital assets
daily
service business
20. Signed by all partners in a partneship to establish rules about how the business is going to be run
work in process inventory
partnership agreement
(cost of capital asset - residual value) / (expected useful life of capital asset)
residual value
21. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
finished goods inventory
drawings - capital - Income Summary - capital
patents
cash receipts journal
22. Account is reduced by the value of dividends paid to the shareholder
accumulated depreciation account
trademarks
purchase invoice
retained earnings account
23. Owner of a business owned by a single individual
bookkeeping
proprietor
earnings before interest and taxes
goodwill
24. This is reported after the net income on an income statement
declining balance method
non-operating income
statement of owners equity
purchase invoice
25. 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
work in process inventory
cash disbursements journal
land
current assets
26. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
accounts receivable ledger trial balance
cash disbursements journal
statement of retained earnings
service business
27. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
income after taxes
land
invoices
merchandising business
28. Used to write off the cost of an intangible capital asset
amortization
income tax expenses - income tax payable
(cost of capital asset - residual value) / (expected useful life of capital asset)
residual value
29. Each subsidiary ledger has this prepared to ensure that the credit/debit columns balance and are then compared with the control account in the general ledger
invoices
capital assets
trial balance
common share accounts - preferred share accounts
30. Account used to record the net income that is retained in the business at the end of the year
common share accounts - preferred share accounts
retained earnings account
petty cash record
current assets
31. Must be held for use in the production of goods and/or services
capital assets
accounts receivable ledger
income statement
Accounts Receivable Ledger
32. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
outstanding deposits
service business
income before taxes
income tax expenses - income tax payable
33. The two start up methods on simply accountin through the set up wizard
express or custom
land
drawings account
proprietor
34. Formula to calculate the depreciation for the year
depreciation = net book value * %
outstanding deposits
Accounts Receivable Ledger
accumulated depreciation account
35. Documents issued by companies as evidence of transactions made
Income Summary - revenue - expense - capital
Shareholders equity
invoices
retained earnings account
36. You only have to enter business data once
cash disbursements journal
Cost of Goods Sold
capital assets
integrated
37. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
capital assets
purchase journal
general ledger trial balance
net book value
38. 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
Income Summary - revenue - expense - capital
accounts receivable
accounts receivable ledger trial balance
bank reconciliation statement
39. What account is on the purchases and cash disbursements journals
general ledger trial balance
Accounts payable
daily
drawings - capital - Income Summary - capital
40. 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
daily
intangible capital assets
patents
Income Summary - revenue - expense - capital
41. The process of recording the transactions and financial activities of a business
basic - pro - premium
(cost of capital asset - residual value) / (expected useful life of capital asset)
bookkeeping
service business
42. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
bookkeeping
declining balance method
petty cash account
work in process inventory
43. Lists all vendors to whom your company has purchases
partnership
capital assets
integrated
Accounts Payable Ledger
44. At the end of the year - the bookkeeper will close each partner's __________ account to his/her _______ account and allocate each partner's share of the net income or loss in the business from the _________ ________ Account to his/her ________ accoun
drawings - capital - Income Summary - capital
Accounts Receivable Ledger
Accounts payable
outstanding deposits
45. 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
income before taxes
Accounts Payable Ledger
land
work in process inventory
46. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
intangible capital assets
outstanding checks
sole proprietorship
capital assets
47. As a rule these should always be recorded on the balance sheet at cost
capital assets
modules
earnings before interest and taxes
income before taxes
48. When you proceed to reconcile your bank account you will use these two things
earnings before interest and taxes
depreciation = net book value * %
statement of owners equity
cash receipts and cash disbursements journals
49. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
accounts receivable ledger
income statement
depreciation
capital and drawings account
50. A record of a purchase made by a company - showing the terms and conditions for payment
declining balance method
capital assets
finished goods inventory
purchase invoice