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






2. Used to write off the cost of an intangible capital asset






3. All daily transactions are entered through these






4. Formula to calculate the net book value






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






6. Prepared by sole proprietors and partnerships






7. Are not intended for resale






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






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






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






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






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






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






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






15. 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






16. Calculated by subtracting sales from the cogs






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






18. This business does not have a purchase account and no inventory is recorded on the balance sheet






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






20. 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






21. Taxes are deducted from the income before taxes total on an income statement to come up with this total...






22. Includes all debt that is due in more than one year






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






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






25. 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






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






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






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






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






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






31. 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






32. What are the three versions of simply accounting






33. A business that offers services to the public






34. Documents issued by companies as evidence of transactions made






35. First part of the income statement






36. 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






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






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






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






40. 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






41. One is maintained for all classes of capital assets






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






43. Lists all vendors to whom your company has purchases






44. Also know as the net book value






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






46. Owner of a business owned by a single individual






47. 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






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






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






50. 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