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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 account is on the purchases and cash disbursements journals






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






3. 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






4. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years






5. 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.






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






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






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






9. The process of recording the transactions and financial activities of a business






10. As a rule these should always be recorded on the balance sheet at cost






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






12. 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






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






14. Formula to calculate the net book value






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






16. Represents the assets on hand - the liabilities owed and the owners equity






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






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






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






20. Account maintained for small purchases






21. Calculated by subtracting sales from the cogs






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






23. Prepared by corporations - similar to a statement of owners equity






24. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc






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






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






27. 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






28. A legal document giving official permission to do something






29. 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






30. 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






31. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






33. Oversees the management of the company/corporation






34. Prepared by sole proprietors and partnerships






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






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






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






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






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






40. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset






41. A list of all the disbursements made from your petty cash in the box with the receipts and the cash






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






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






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






45. Represents the expected value of the asset at the end of its useful life to the business






46. 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






47. One is maintained for all classes of capital assets






48. 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






49. Includes the costs of all goods that are complete and ready for sale






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