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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. The process of recording the transactions and financial activities of a business
integrated
gross margin
land
bookkeeping
2. Two types of share capital accounts
common share accounts - preferred share accounts
general ledger trial balance
board of directors
retained earnings account
3. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
Accounts payable
net book value
capital assets
income after taxes
4. Also know as the net book value
intangible capital assets
general ledger trial balance
outstanding deposits
net value
5. The process of comparing the cash plus receipts to the original balance int he account
reconciling the petty cash account
express or custom
depreciation = net book value * %
basic - pro - premium
6. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
accounts receivable ledger
statement of retained earnings
trial balance
accounts payable and accrued expenses
7. How often are the accounts payable entries entered into the accounts payable ledger
service business
capital assets
daily
basic - pro - premium
8. 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
long term liabilities
bank reconciliation statement
income after taxes
Shareholders equity
9. 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
capital assets
land
accounts receivable ledger
accounts receivable
10. Includes the costs of all goods that are complete and ready for sale
land
finished goods inventory
partnership agreement
capital assets
11. Information from the sales invoice is recorded In what journal
depreciation = net book value * %
accounts receivable ledger
sales journal
board of directors
12. Net income is also known as this on an income statement
earnings before interest and taxes
finished goods inventory
retained earnings account
accounts payable and accrued expenses
13. 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
merchandising business
cash receipts journal
depreciation expense account
accounts receivable ledger trial balance
14. Represents the expected value of the asset at the end of its useful life to the business
express or custom
cash receipts journal
residual value
cash disbursements journal
15. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
service business
sales journal
Accounts Receivable Ledger
petty cash account
16. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
non-operating income
straight line depreciation
earnings before interest and taxes
income before taxes
17. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
board of directors
purchase journal
petty cash record
integrated
18. Assets that have no physical form - but have value and are an integral part of the cost of doing business
petty cash account
accounts receivable ledger
depreciation expense account
intangible capital assets
19. Lists all customers and their outstanding balances for non cash or on account sales made
Income Summary - revenue - expense - capital
accounts receivable ledger
non-operating income
service company
20. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
patents
board of directors
capital assets
depreciation expense account
21. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
current liabilities
capital and drawings account
income after taxes
capital assets
22. 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
cash receipts journal
amortization
drawings - capital - Income Summary - capital
capital assets
23. This is reported after the net income on an income statement
sole proprietorship
capital assets
non-operating income
accounts receivable
24. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
Cost of Goods Sold
income statement
raw material inventory
Accounts Payable Ledger
25. Documents issued by companies as evidence of transactions made
Income Summary - revenue - expense - capital
income before taxes
invoices
daily
26. Companies that transform raw materials into finished goods for sale
Cost of Goods Sold
accumulated depreciation account
work in process inventory
manufacturing organizations
27. 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
trial balance
current liabilities
partnership
petty cash account
28. 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
goodwill
net income
Shareholders equity
cash receipts journal
29. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
Accounts Payable Ledger
drawings account
patents
invoices
30. Who makes the decision on the amount to keep in the petty cash account
management
Accounts Receivable Ledger
Accounts Payable Ledger
accumulated depreciation account
31. First part of the income statement
Income Summary - revenue - expense - capital
cash disbursements journal
Sales
retained earnings account
32. 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
Income Summary - revenue - expense - capital
goodwill
net income
modules
33. Owner of a business owned by a single individual
accounts receivable ledger trial balance
capital account
merchandising business
proprietor
34. The two start up methods on simply accountin through the set up wizard
express or custom
accounts receivable
integration
cash disbursements journal
35. Account used to record the net income that is retained in the business at the end of the year
drawings account
integration
retained earnings account
outstanding checks
36. 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.
Shareholders equity
Sales
work in process inventory
petty cash account
37. A separate one is maintained for each class of capital assets
daily
accumulated depreciation account
merchandising business
sales journal
38. One is maintained for all classes of capital assets
basic - pro - premium
depreciation expense account
board of directors
income before taxes
39. As a rule these should always be recorded on the balance sheet at cost
partnership
income after taxes
capital assets
daily
40. Are not intended for resale
land
management
capital assets
express or custom
41. Listed on the balance sheet are assets that can be turned into cash within one year
depreciation expense account
cash receipts and cash disbursements journals
current assets
Accounts Receivable Ledger
42. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
income tax expenses - income tax payable
current liabilities
amortization
accumulated depreciation account
43. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
land
trial balance
general ledger trial balance
Accounts Receivable Ledger
44. All the checks that have not appeared on the bank statement
retained earnings account
petty cash account
petty cash record
outstanding checks
45. Amounts owed by the company that are due within one year of the balance sheet date
express or custom
cash receipts and cash disbursements journals
Accounts Payable Ledger
current liabilities
46. All daily transactions are entered through these
residual value
land
invoices
modules
47. This business purchases products from its vendors for resale to its customers
service business
merchandising business
depreciation = net book value * %
accounts receivable ledger
48. Shareholders equity contains two different types of accounts.... What are they
Accounts payable
service business
Share capital accounts - retained earnings
depreciation expense account
49. Account maintained for small purchases
retained earnings account
petty cash account
current assets
net book value = original cost of asset - accumulated depreciation`
50. When you proceed to reconcile your bank account you will use these two things
cash receipts and cash disbursements journals
Share capital accounts - retained earnings
accounts receivable ledger trial balance
Sales