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Test your basic knowledge |
Bookkeeping Advanced Vocab
Start Test
Study First
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. What account is on the cash receipts and sales journals
licenses
accounts receivable
income before taxes
accounts receivable ledger trial balance
2. When a merchandising business prepares its income statement it includes a section called.....
declining balance method
Cost of Goods Sold
statement of owners equity
accounts receivable ledger
3. 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
integrated
petty cash record
drawings account
service business
4. As a rule these should always be recorded on the balance sheet at cost
accounts receivable
sole proprietorship
Income Summary - revenue - expense - capital
capital assets
5. 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
merchandising business
management
common share accounts - preferred share accounts
drawings - capital - Income Summary - capital
6. Formula to calculate the depreciation for the year
Accounts Payable Ledger
depreciation = net book value * %
cash receipts journal
general ledger trial balance
7. Each subsidiary ledger has this prepared to ensure that the credit/debit columns balance and are then compared with the control account in the general ledger
trial balance
modules
net income
sole proprietorship
8. 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
Income Summary - revenue - expense - capital
accounts receivable ledger trial balance
trademarks
proprietor
9. Represents the expected value of the asset at the end of its useful life to the business
trial balance
residual value
invoices
purchase invoice
10. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
net book value = original cost of asset - accumulated depreciation`
capital assets
raw material inventory
drawings account
11. Represents the assets on hand - the liabilities owed and the owners equity
outstanding deposits
daily
merchandising business
balance sheet
12. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
capital assets
amortization
purchase journal
declining balance method
13. Lists all vendors to whom your company has purchases
Cost of Goods Sold
sole proprietorship
Accounts Payable Ledger
basic - pro - premium
14. Account maintained for small purchases
statement of retained earnings
depreciation
petty cash account
Accounts Receivable Ledger
15. This business purchases products from its vendors for resale to its customers
capital assets
merchandising business
balance sheet
long term liabilities
16. This is reported after the net income on an income statement
service business
express or custom
non-operating income
(cost of capital asset - residual value) / (expected useful life of capital asset)
17. A business that is owned by a single individual
capital assets
retained earnings account
sole proprietorship
income statement
18. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
Share capital accounts - retained earnings
net income
merchandising business
current assets
19. Consist of physical assets and non-physical or intangible properties
current liabilities
depreciation
trial balance
capital assets
20. Formula to calculate the net book value
net book value = original cost of asset - accumulated depreciation`
current assets
residual value
capital assets
21. The two start up methods on simply accountin through the set up wizard
bookkeeping
express or custom
finished goods inventory
patents
22. This business does not have a purchase account and no inventory is recorded on the balance sheet
land
bank reconciliation statement
service business
purchase invoice
23. Listed on the balance sheet are assets that can be turned into cash within one year
Accounts Receivable Ledger
bank reconciliation statement
capital assets
current assets
24. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
licenses
Accounts Receivable Ledger
declining balance method
(cost of capital asset - residual value) / (expected useful life of capital asset)
25. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
depreciation expense account
Sales
land
patents
26. Shareholders equity contains two different types of accounts.... What are they
capital account
long term liabilities
corporation
Share capital accounts - retained earnings
27. Used to write off the cost of an intangible capital asset
accounts receivable ledger
amortization
petty cash record
retained earnings account
28. Shows how much income has been earned b the business during the time period
modules
long term liabilities
income statement
amortization
29. All daily transactions are entered through these
partnership
non-operating income
corporation
modules
30. Has an indefinate life span and is not considered to reduce in value over time
raw material inventory
reconciling the petty cash account
land
capital and drawings account
31. You only have to enter business data once
bookkeeping
integrated
petty cash record
Sales
32. 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
depreciation = net book value * %
corporation
goodwill
statement of retained earnings
33. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
drawings - capital - Income Summary - capital
Accounts Payable Ledger
accounts receivable ledger trial balance
purchase journal
34. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
patents
statement of owners equity
Accounts Receivable Ledger
sole proprietorship
35. Prepared by sole proprietors and partnerships
capital assets
statement of owners equity
board of directors
long term liabilities
36. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
depreciation = net book value * %
management
general ledger trial balance
income after taxes
37. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
cash disbursements journal
net income
petty cash record
outstanding checks
38. Information from the purchase invoice is recorded In what journal
Accounts Receivable Ledger
purchase journal
net book value = original cost of asset - accumulated depreciation`
bookkeeping
39. Information from the sales invoice is recorded In what journal
petty cash account
accumulated depreciation account
trademarks
sales journal
40. What is the formula for calculating straight-line depreciation
manufacturing organizations
residual value
bookkeeping
(cost of capital asset - residual value) / (expected useful life of capital asset)
41. Also know as the net book value
capital and drawings account
drawings - capital - Income Summary - capital
manufacturing organizations
net value
42. Documents issued by companies as evidence of transactions made
declining balance method
merchandising business
modules
invoices
43. Prepared by corporations - similar to a statement of owners equity
statement of retained earnings
invoices
bookkeeping
trial balance
44. What are the three versions of simply accounting
Cost of Goods Sold
balance sheet
basic - pro - premium
patents
45. All the checks that have not appeared on the bank statement
earnings before interest and taxes
income before taxes
outstanding checks
capital assets
46. Includes all debt that is due in more than one year
long term liabilities
capital and drawings account
gross margin
balance sheet
47. The process of comparing the cash plus receipts to the original balance int he account
reconciling the petty cash account
service company
accounts payable and accrued expenses
integration
48. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
balance sheet
capital assets
bookkeeping
income after taxes
49. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
purchase journal
cash disbursements journal
petty cash record
Accounts Receivable Ledger
50. Must be held for use in the production of goods and/or services
amortization
Accounts Payable Ledger
business number
capital assets