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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. First part of the income statement






2. In a corporations books - the equity section is referred to as _________ ________






3. 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






4. All daily transactions are entered through these






5. Amounts owed by the company that are due within one year of the balance sheet date






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






7. You only have to enter business data once






8. Prepared by sole proprietors and partnerships






9. A business that is owned by a single individual






10. 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






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






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






13. Formula to calculate the net book value






14. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________






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






16. 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






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






18. Calculated by subtracting sales from the cogs






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






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






21. Lists all vendors to whom your company has purchases






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






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






24. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset






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






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






27. 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






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






29. Account maintained for small purchases






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






31. Who makes the decision on the amount to keep in the petty cash account






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






33. 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






34. A business that offers services to the public






35. A legal document giving official permission to do something






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.






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






38. Also know as the net book value






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






40. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc






41. Oversees the management of the company/corporation






42. Two types of share capital accounts






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






44. 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






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






46. A number of owners join together and create one business in which they each own an agreed upon percentage






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






48. Listed on the balance sheet are assets that can be turned into cash within one year






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






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