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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. A separate one is maintained for each class of capital assets
express or custom
accumulated depreciation account
partnership
income statement
2. Oversees the management of the company/corporation
work in process inventory
board of directors
trial balance
accounts payable and accrued expenses
3. In a corporations books - the equity section is referred to as _________ ________
corporation
gross margin
bookkeeping
Shareholders equity
4. This business purchases products from its vendors for resale to its customers
merchandising business
Accounts payable
basic - pro - premium
outstanding deposits
5. Consist of physical assets and non-physical or intangible properties
capital assets
general ledger trial balance
net value
Share capital accounts - retained earnings
6. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
Share capital accounts - retained earnings
Accounts Payable Ledger
earnings before interest and taxes
integrated
7. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
land
straight line depreciation
income before taxes
raw material inventory
8. A business that offers services to the public
merchandising business
sales journal
current liabilities
service company
9. Formula to calculate the net book value
net book value = original cost of asset - accumulated depreciation`
work in process inventory
common share accounts - preferred share accounts
trial balance
10. Includes the costs of all goods that are complete and ready for sale
petty cash account
purchase invoice
finished goods inventory
retained earnings account
11. 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
accumulated depreciation account
Accounts Receivable Ledger
bank reconciliation statement
invoices
12. Account is reduced by the value of dividends paid to the shareholder
sole proprietorship
retained earnings account
accounts receivable ledger
depreciation = net book value * %
13. Includes all debt that is due in more than one year
basic - pro - premium
long term liabilities
(cost of capital asset - residual value) / (expected useful life of capital asset)
gross margin
14. When a merchandising business prepares its income statement it includes a section called.....
Cost of Goods Sold
petty cash record
purchase invoice
finished goods inventory
15. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
straight line depreciation
income after taxes
balance sheet
Accounts Payable Ledger
16. What is the formula for calculating straight-line depreciation
accounts payable and accrued expenses
(cost of capital asset - residual value) / (expected useful life of capital asset)
merchandising business
intangible capital assets
17. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
invoices
net income
accounts payable and accrued expenses
petty cash record
18. Calculated by subtracting sales from the cogs
gross margin
accounts receivable
integrated
corporation
19. Has an indefinate life span and is not considered to reduce in value over time
merchandising business
partnership agreement
land
raw material inventory
20. Account maintained for small purchases
accounts payable ledger
depreciation
petty cash account
trademarks
21. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
finished goods inventory
depreciation = net book value * %
modules
capital assets
22. 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
depreciation expense account
cash receipts journal
accounts payable ledger
statement of retained earnings
23. 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
residual value
long term liabilities
accounts payable and accrued expenses
capital and drawings account
24. When you proceed to reconcile your bank account you will use these two things
cash receipts and cash disbursements journals
current assets
goodwill
Cost of Goods Sold
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
land
petty cash record
trademarks
raw material inventory
26. All daily transactions are entered through these
income before taxes
modules
cash disbursements journal
current liabilities
27. Shows how much income has been earned b the business during the time period
licenses
integrated
income statement
merchandising business
28. Prepared by corporations - similar to a statement of owners equity
statement of retained earnings
gross margin
reconciling the petty cash account
Cost of Goods Sold
29. 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 checks
drawings account
balance sheet
income tax expenses - income tax payable
30. Are not intended for resale
petty cash account
merchandising business
Income Summary - revenue - expense - capital
capital assets
31. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
merchandising business
Cost of Goods Sold
sole proprietorship
statement of owners equity
32. Lists all customers and their outstanding balances for non cash or on account sales made
invoices
sales journal
licenses
accounts receivable ledger
33. This business does not have a purchase account and no inventory is recorded on the balance sheet
finished goods inventory
cash disbursements journal
capital assets
service business
34. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
drawings account
capital assets
income tax expenses - income tax payable
sales journal
35. How often are the accounts payable entries entered into the accounts payable ledger
integrated
daily
drawings account
proprietor
36. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
bank reconciliation statement
net book value
current liabilities
outstanding deposits
37. A business that is owned by a single individual
sole proprietorship
Cost of Goods Sold
merchandising business
sales journal
38. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
Shareholders equity
current liabilities
depreciation
retained earnings account
39. 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
depreciation = net book value * %
drawings account
goodwill
trial balance
40. Calculated from adding the non operating expenses to the net income
declining balance method
income before taxes
accounts payable ledger
land
41. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
balance sheet
cash disbursements journal
trademarks
work in process inventory
42. The process of comparing the cash plus receipts to the original balance int he account
non-operating income
corporation
reconciling the petty cash account
drawings account
43. Two types of share capital accounts
depreciation
common share accounts - preferred share accounts
general ledger trial balance
declining balance method
44. A partnership has a separate __________ and ____________ account for each partner
net income
capital and drawings account
merchandising business
cash receipts journal
45. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
Cost of Goods Sold
income before taxes
capital assets
straight line depreciation
46. A legal document giving official permission to do something
capital and drawings account
licenses
petty cash account
statement of retained earnings
47. First part of the income statement
service business
Sales
trademarks
partnership agreement
48. What account is on the purchases and cash disbursements journals
service business
licenses
Accounts payable
petty cash account
49. Net income is also known as this on an income statement
cash receipts and cash disbursements journals
accounts receivable
earnings before interest and taxes
current assets
50. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
corporation
patents
Accounts Receivable Ledger
Cost of Goods Sold