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






2. Prepared by corporations - similar to a statement of owners equity






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






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






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






6. One is maintained for all classes of capital assets






7. 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






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






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






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






11. Owner of a business owned by a single individual






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






13. Also know as the net book value






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






15. 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






16. This business does not have a purchase account and no inventory is recorded on the balance sheet






17. 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






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






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






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






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






22. 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






23. Oversees the management of the company/corporation






24. 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






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






26. Account maintained for small purchases






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






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






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






30. Formula to calculate the depreciation for the year






31. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years






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






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






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






35. 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






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






37. What account is on the cash receipts and sales journals






38. What account is on the purchases and cash disbursements journals






39. Are not intended for resale






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






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






42. You only have to enter business data once






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






44. The two start up methods on simply accountin through the set up wizard






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






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






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






48. What is the formula for calculating straight-line depreciation






49. 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






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