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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. 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






2. 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






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






4. A legal document giving official permission to do something






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






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






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






8. All daily transactions are entered through these






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






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






11. First part of the income statement






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






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






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






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






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






17. Signed by all partners in a partneship to establish rules about how the business is going to be run






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






19. Are not intended for resale






20. 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






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






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






23. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention






24. Oversees the management of the company/corporation






25. 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






26. Lists all vendors to whom your company has purchases






27. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset






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






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






30. Formula to calculate the net book value






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






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






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






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






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






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






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






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






39. Owner of a business owned by a single individual






40. 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






41. 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






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






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






44. Prepared by sole proprietors and partnerships






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






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






47. Account maintained for small purchases






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






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






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