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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. One is maintained for all classes of capital assets
invoices
accounts receivable
daily
depreciation expense account
2. Used to write off the cost of an intangible capital asset
partnership
amortization
capital assets
statement of retained earnings
3. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
income after taxes
retained earnings account
purchase journal
residual value
4. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
non-operating income
net income
modules
Accounts Receivable Ledger
5. 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
management
bookkeeping
capital assets
Income Summary - revenue - expense - capital
6. Consist of physical assets and non-physical or intangible properties
capital assets
Sales
daily
Shareholders equity
7. Information from the purchase invoice is recorded In what journal
purchase journal
petty cash record
Accounts payable
common share accounts - preferred share accounts
8. Represents the expected value of the asset at the end of its useful life to the business
merchandising business
Accounts Receivable Ledger
statement of retained earnings
residual value
9. A business that offers services to the public
Accounts Receivable Ledger
goodwill
service company
sole proprietorship
10. Must have a useful life of more than one year
capital assets
current assets
sole proprietorship
bookkeeping
11. What are the three versions of simply accounting
accounts receivable ledger trial balance
capital assets
basic - pro - premium
net book value
12. 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
depreciation = net book value * %
accounts payable and accrued expenses
net value
income tax expenses - income tax payable
13. Account maintained for small purchases
net value
petty cash account
drawings account
(cost of capital asset - residual value) / (expected useful life of capital asset)
14. Deposits that have not yet been deposited in the bank account
cash disbursements journal
outstanding deposits
land
income statement
15. When a merchandising business prepares its income statement it includes a section called.....
Accounts Receivable Ledger
Cost of Goods Sold
Shareholders equity
income before taxes
16. Two types of share capital accounts
trial balance
outstanding checks
common share accounts - preferred share accounts
long term liabilities
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
retained earnings account
accounts payable ledger
finished goods inventory
drawings - capital - Income Summary - capital
18. A separate one is maintained for each class of capital assets
invoices
work in process inventory
basic - pro - premium
accumulated depreciation account
19. Shareholders equity contains two different types of accounts.... What are they
Cost of Goods Sold
Share capital accounts - retained earnings
income after taxes
sales journal
20. Calculated from adding the non operating expenses to the net income
income before taxes
depreciation expense account
capital assets
express or custom
21. Account used to record the net income that is retained in the business at the end of the year
retained earnings account
straight line depreciation
net book value
earnings before interest and taxes
22. Represents the assets on hand - the liabilities owed and the owners equity
reconciling the petty cash account
invoices
Sales
balance sheet
23. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
accounts receivable
gross margin
Accounts Receivable Ledger
accounts receivable ledger trial balance
24. Includes the costs of all goods that are complete and ready for sale
merchandising business
Accounts Payable Ledger
Share capital accounts - retained earnings
finished goods inventory
25. All daily transactions are entered through these
modules
purchase invoice
current assets
business number
26. Amounts owed by the company that are due within one year of the balance sheet date
petty cash record
declining balance method
current liabilities
service business
27. You only have to enter business data once
integrated
current assets
common share accounts - preferred share accounts
accounts payable ledger
28. First part of the income statement
land
invoices
accounts receivable
Sales
29. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
depreciation
work in process inventory
current assets
cash receipts journal
30. A partnership has a separate __________ and ____________ account for each partner
drawings account
net value
capital and drawings account
Share capital accounts - retained earnings
31. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
Accounts Receivable Ledger
Cost of Goods Sold
retained earnings account
retained earnings account
32. When you proceed to reconcile your bank account you will use these two things
cash receipts and cash disbursements journals
Cost of Goods Sold
land
balance sheet
33. Oversees the management of the company/corporation
outstanding deposits
board of directors
land
accounts receivable ledger trial balance
34. A legal document giving official permission to do something
accounts payable and accrued expenses
licenses
depreciation
accounts receivable ledger trial balance
35. Includes all debt that is due in more than one year
statement of owners equity
modules
long term liabilities
capital assets
36. The process of comparing the cash plus receipts to the original balance int he account
capital assets
cash disbursements journal
reconciling the petty cash account
cash receipts and cash disbursements journals
37. What is the formula for calculating straight-line depreciation
cash disbursements journal
(cost of capital asset - residual value) / (expected useful life of capital asset)
manufacturing organizations
goodwill
38. 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
Cost of Goods Sold
depreciation
income tax expenses - income tax payable
trial balance
39. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
cash disbursements journal
net book value = original cost of asset - accumulated depreciation`
sole proprietorship
depreciation = net book value * %
40. Documents issued by companies as evidence of transactions made
service company
corporation
accounts payable ledger
invoices
41. All the checks that have not appeared on the bank statement
land
integration
outstanding checks
income tax expenses - income tax payable
42. A business owned by one or more individuals who are known as shareholders
corporation
service company
capital assets
accumulated depreciation account
43. Lists all customers and their outstanding balances for non cash or on account sales made
Accounts Payable Ledger
accounts receivable ledger
current liabilities
Shareholders equity
44. How often are the accounts payable entries entered into the accounts payable ledger
common share accounts - preferred share accounts
statement of owners equity
daily
cash disbursements journal
45. Prepared by corporations - similar to a statement of owners equity
statement of retained earnings
depreciation
income after taxes
earnings before interest and taxes
46. A business that is owned by a single individual
sole proprietorship
income tax expenses - income tax payable
land
Accounts Payable Ledger
47. Account is reduced by the value of dividends paid to the shareholder
partnership agreement
bank reconciliation statement
retained earnings account
common share accounts - preferred share accounts
48. A record of a purchase made by a company - showing the terms and conditions for payment
purchase invoice
capital assets
cash disbursements journal
long term liabilities
49. 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 assets
capital account
Accounts Payable Ledger
sales journal
50. 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
land
capital assets
straight line depreciation
drawings - capital - Income Summary - capital