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Test your basic knowledge |
Bookkeeping Advanced Vocab
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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. Also know as the net book value
earnings before interest and taxes
net value
retained earnings account
statement of retained earnings
2. 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
outstanding deposits
net value
Accounts Receivable Ledger
bank reconciliation statement
3. Lists all vendors to whom your company has purchases
patents
service business
business number
Accounts Payable Ledger
4. 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
raw material inventory
accounts receivable ledger
Income Summary - revenue - expense - capital
board of directors
5. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
land
raw material inventory
depreciation = net book value * %
partnership agreement
6. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
service business
goodwill
Cost of Goods Sold
capital assets
7. Must be held for use in the production of goods and/or services
capital assets
accounts receivable ledger
purchase invoice
service business
8. 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
capital assets
purchase journal
capital assets
trial balance
9. Lists all customers and their outstanding balances for non cash or on account sales made
income statement
manufacturing organizations
accounts receivable ledger
capital assets
10. Prepared by sole proprietors and partnerships
work in process inventory
management
balance sheet
statement of owners equity
11. You only have to enter business data once
long term liabilities
integrated
accumulated depreciation account
accounts payable and accrued expenses
12. Amounts owed by the company that are due within one year of the balance sheet date
petty cash record
current liabilities
capital and drawings account
cash disbursements journal
13. The process of recording the transactions and financial activities of a business
bookkeeping
straight line depreciation
earnings before interest and taxes
outstanding checks
14. This business does not have a purchase account and no inventory is recorded on the balance sheet
land
depreciation = net book value * %
petty cash record
service business
15. What is used to reference a company's Canadian GST and HST
business number
finished goods inventory
partnership
Accounts Receivable Ledger
16. What is the formula for calculating straight-line depreciation
board of directors
(cost of capital asset - residual value) / (expected useful life of capital asset)
land
licenses
17. Calculated from adding the non operating expenses to the net income
net book value = original cost of asset - accumulated depreciation`
income before taxes
income tax expenses - income tax payable
long term liabilities
18. 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
drawings - capital - Income Summary - capital
sales journal
retained earnings account
sole proprietorship
19. Calculated by subtracting sales from the cogs
balance sheet
gross margin
earnings before interest and taxes
depreciation expense account
20. The two start up methods on simply accountin through the set up wizard
express or custom
residual value
statement of retained earnings
Accounts Payable Ledger
21. A business owned by one or more individuals who are known as shareholders
corporation
business number
long term liabilities
partnership
22. Account maintained for small purchases
general ledger trial balance
retained earnings account
(cost of capital asset - residual value) / (expected useful life of capital asset)
petty cash account
23. Net income is also known as this on an income statement
current liabilities
licenses
finished goods inventory
earnings before interest and taxes
24. Owner of a business owned by a single individual
cash receipts and cash disbursements journals
proprietor
patents
depreciation
25. Assets that have no physical form - but have value and are an integral part of the cost of doing business
income before taxes
capital and drawings account
intangible capital assets
accumulated depreciation account
26. How often are the accounts payable entries entered into the accounts payable ledger
daily
net value
Accounts payable
partnership agreement
27. First part of the income statement
Sales
accounts receivable ledger trial balance
capital and drawings account
service company
28. Account used to record the net income that is retained in the business at the end of the year
capital assets
capital and drawings account
retained earnings account
capital assets
29. The ledgers are linked to the general ledger by this process
board of directors
integration
net book value
work in process inventory
30. Prepared by corporations - similar to a statement of owners equity
manufacturing organizations
statement of retained earnings
cash receipts and cash disbursements journals
sole proprietorship
31. 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
partnership agreement
proprietor
capital and drawings account
32. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
capital assets
partnership agreement
management
petty cash record
33. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
goodwill
Shareholders equity
sales journal
Accounts Receivable Ledger
34. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
straight line depreciation
basic - pro - premium
sales journal
patents
35. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
net book value = original cost of asset - accumulated depreciation`
earnings before interest and taxes
cash receipts journal
capital assets
36. A record of a purchase made by a company - showing the terms and conditions for payment
drawings - capital - Income Summary - capital
capital assets
Income Summary - revenue - expense - capital
purchase invoice
37. 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
basic - pro - premium
cash receipts journal
express or custom
land
38. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
licenses
integrated
raw material inventory
accounts receivable ledger
39. Represents the assets on hand - the liabilities owed and the owners equity
accounts payable ledger
accounts payable and accrued expenses
balance sheet
Shareholders equity
40. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
Accounts Payable Ledger
management
Accounts Receivable Ledger
Accounts payable
41. This is reported after the net income on an income statement
modules
bank reconciliation statement
management
non-operating income
42. All the checks that have not appeared on the bank statement
outstanding checks
gross margin
land
capital assets
43. 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
Cost of Goods Sold
non-operating income
accounts receivable ledger trial balance
capital assets
44. Signed by all partners in a partneship to establish rules about how the business is going to be run
long term liabilities
current assets
partnership agreement
drawings account
45. 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
modules
service business
trademarks
retained earnings account
46. 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
outstanding deposits
management
manufacturing organizations
goodwill
47. Consist of physical assets and non-physical or intangible properties
capital assets
outstanding deposits
integrated
accounts payable and accrued expenses
48. Includes the costs of all goods that are complete and ready for sale
Share capital accounts - retained earnings
partnership agreement
finished goods inventory
residual value
49. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
merchandising business
declining balance method
long term liabilities
cash receipts journal
50. Shareholders equity contains two different types of accounts.... What are they
corporation
net book value = original cost of asset - accumulated depreciation`
Share capital accounts - retained earnings
income tax expenses - income tax payable