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






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






3. A business that is owned by a single individual






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






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






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






7. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






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






10. 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






11. Companies that transform raw materials into finished goods for sale






12. 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






13. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared






14. Information from the purchase invoice is recorded In what journal






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






16. Formula to calculate the net book value






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






18. Formula to calculate the depreciation for the year






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






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






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






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






23. 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






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






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






26. 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






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






28. First part of the income statement






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






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






31. 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






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






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






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






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






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






37. The process of comparing the cash plus receipts to the original balance int he account






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






39. A legal document giving official permission to do something






40. Shows how much income has been earned b the business during the time period






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






42. Two types of share capital accounts






43. What are the three versions of simply accounting






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






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






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






47. Documents issued by companies as evidence of transactions made






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






49. A separate one is maintained for each class of capital assets






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