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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. 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






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






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






4. 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






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






6. A business that is owned by a single individual






7. 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






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






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






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






13. You only have to enter business data once






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






15. 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






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






17. Shareholders equity contains two different types of accounts.... What are they






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






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






20. Owner of a business owned by a single individual






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






22. 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






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






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






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






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






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






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






29. 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






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






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






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






33. 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






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






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






36. Two types of share capital accounts






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






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






39. 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






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






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






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






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






44. One is maintained for all classes of capital assets






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






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






47. Listed on the balance sheet are assets that can be turned into cash within one year






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






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






50. 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.