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






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






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






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






5. Formula to calculate the net book value






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






7. As a rule these should always be recorded on the balance sheet at cost






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






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






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






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






12. 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






13. In this business there is usually one revenue account for each type of revenue earned - and there are various expense accounts where the costs of operating the business are recorded






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






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






16. 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






17. Prepared by sole proprietors and partnerships






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






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






20. 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






21. Oversees the management of the company/corporation






22. Assets that have no physical form - but have value and are an integral part of the cost of doing business






23. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset






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






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






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






27. Represents the expected value of the asset at the end of its useful life to the business






28. 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.






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






30. Calculated by subtracting sales from the cogs






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






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






33. A legal document giving official permission to do something






34. Information from the sales invoice is recorded In what journal






35. First part of the income statement






36. Account maintained for small purchases






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






38. A word - symbol - design - or combination of these used to represent products or services provided by a company. It helps to distinguish products or services of one company from another






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






40. A business that is owned by a single individual






41. 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






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






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






44. All daily transactions are entered through these






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






46. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______






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






48. 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






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






50. Formula to calculate the depreciation for the year