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Bookkeeping Advanced Vocab
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Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
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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. 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
service business
proprietor
Shareholders equity
petty cash record
2. Two types of share capital accounts
statement of owners equity
net income
petty cash record
common share accounts - preferred share accounts
3. What account is on the purchases and cash disbursements journals
capital and drawings account
accounts receivable
proprietor
Accounts payable
4. Has an indefinate life span and is not considered to reduce in value over time
land
bank reconciliation statement
long term liabilities
service business
5. How often are the accounts payable entries entered into the accounts payable ledger
daily
straight line depreciation
partnership agreement
Accounts Receivable Ledger
6. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
petty cash record
accounts receivable ledger
integrated
cash receipts and cash disbursements journals
7. Account is reduced by the value of dividends paid to the shareholder
net value
service company
retained earnings account
statement of retained earnings
8. Who makes the decision on the amount to keep in the petty cash account
Sales
Shareholders equity
drawings - capital - Income Summary - capital
management
9. Information from the purchase invoice is recorded In what journal
corporation
residual value
Cost of Goods Sold
purchase journal
10. 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
outstanding deposits
integration
Accounts Payable Ledger
cash receipts journal
11. A separate one is maintained for each class of capital assets
invoices
accumulated depreciation account
management
partnership agreement
12. Represents the assets on hand - the liabilities owed and the owners equity
capital and drawings account
straight line depreciation
balance sheet
intangible capital assets
13. Must have a useful life of more than one year
board of directors
accounts receivable ledger
capital assets
residual value
14. When you proceed to reconcile your bank account you will use these two things
net book value = original cost of asset - accumulated depreciation`
(cost of capital asset - residual value) / (expected useful life of capital asset)
residual value
cash receipts and cash disbursements journals
15. Must be held for use in the production of goods and/or services
integrated
capital assets
Cost of Goods Sold
accumulated depreciation account
16. First part of the income statement
land
accounts receivable ledger trial balance
Sales
earnings before interest and taxes
17. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
capital assets
Accounts Receivable Ledger
sole proprietorship
cash disbursements journal
18. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
cash disbursements journal
net income
Cost of Goods Sold
accumulated depreciation account
19. Consist of physical assets and non-physical or intangible properties
land
petty cash account
accounts payable ledger
capital assets
20. Are not intended for resale
declining balance method
capital assets
Accounts Payable Ledger
land
21. Deposits that have not yet been deposited in the bank account
purchase invoice
outstanding deposits
capital assets
capital account
22. Includes the costs of all goods that are complete and ready for sale
Share capital accounts - retained earnings
cash receipts and cash disbursements journals
finished goods inventory
proprietor
23. You only have to enter business data once
manufacturing organizations
integrated
management
statement of retained earnings
24. What account is on the cash receipts and sales journals
accounts receivable
integrated
petty cash account
drawings account
25. Account used to record the net income that is retained in the business at the end of the year
Accounts Payable Ledger
capital account
proprietor
retained earnings account
26. The process of comparing the cash plus receipts to the original balance int he account
capital assets
reconciling the petty cash account
net book value
raw material inventory
27. Companies that transform raw materials into finished goods for sale
manufacturing organizations
general ledger trial balance
earnings before interest and taxes
bookkeeping
28. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
accounts receivable ledger
service business
purchase journal
capital account
29. Account maintained for small purchases
income before taxes
service business
petty cash account
manufacturing organizations
30. Signed by all partners in a partneship to establish rules about how the business is going to be run
straight line depreciation
land
partnership agreement
manufacturing organizations
31. Listed on the balance sheet are assets that can be turned into cash within one year
retained earnings account
current assets
amortization
Accounts Payable Ledger
32. The process of recording the transactions and financial activities of a business
basic - pro - premium
statement of retained earnings
bookkeeping
patents
33. 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
accounts receivable ledger trial balance
work in process inventory
current liabilities
income before taxes
34. Shows how much income has been earned b the business during the time period
capital assets
capital assets
income statement
Accounts Payable Ledger
35. Oversees the management of the company/corporation
cash disbursements journal
accumulated depreciation account
Accounts Receivable Ledger
board of directors
36. A number of owners join together and create one business in which they each own an agreed upon percentage
partnership
sales journal
residual value
board of directors
37. This business purchases products from its vendors for resale to its customers
capital and drawings account
capital assets
express or custom
merchandising business
38. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
board of directors
capital assets
bookkeeping
non-operating income
39. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
amortization
purchase journal
Cost of Goods Sold
net value
40. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
income after taxes
capital assets
sales journal
trial balance
41. Calculated from adding the non operating expenses to the net income
capital assets
sales journal
income before taxes
business number
42. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
capital assets
depreciation
straight line depreciation
income after taxes
43. A record of a purchase made by a company - showing the terms and conditions for payment
purchase invoice
bank reconciliation statement
capital and drawings account
express or custom
44. Lists all vendors to whom your company has purchases
Accounts Payable Ledger
sales journal
Sales
bank reconciliation statement
45. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
depreciation expense account
manufacturing organizations
Accounts Receivable Ledger
Share capital accounts - retained earnings
46. 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
bank reconciliation statement
purchase journal
depreciation
partnership agreement
47. 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
accounts payable and accrued expenses
partnership
partnership agreement
common share accounts - preferred share accounts
48. A legal document giving official permission to do something
depreciation expense account
net book value
bookkeeping
licenses
49. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
net book value
petty cash account
accounts payable and accrued expenses
modules
50. A business owned by one or more individuals who are known as shareholders
corporation
net value
trial balance
income tax expenses - income tax payable
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