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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. What is used to reference a company's Canadian GST and HST






2. Prepared by sole proprietors and partnerships






3. 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.






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






5. Has an indefinate life span and is not considered to reduce in value over time






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






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






8. 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






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






10. Consist of physical assets and non-physical or intangible properties






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






12. Two types of share capital accounts






13. Calculated from adding the non operating expenses to the net income






14. 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






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






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






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






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






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






20. What account is on the cash receipts and sales journals






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






22. All daily transactions are entered through these






23. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention






24. Oversees the management of the company/corporation






25. Information from the sales invoice is recorded In what journal






26. What account is on the purchases and cash disbursements journals






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






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






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






30. Usually forms the first entry in the capital assets section of the balance sheet - all of This is grouped together into one amount under the title






31. 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






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






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






34. A business that is owned by a single individual






35. Formula to calculate the net book value






36. 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






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






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






39. Are not intended for resale






40. A legal document giving official permission to do something






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






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






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






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






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






46. 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






47. What are the three versions of simply accounting






48. Documents issued by companies as evidence of transactions made






49. First part of the income statement






50. Account maintained for small purchases