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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. Prepared by sole proprietors and partnerships






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






3. How often are the accounts payable entries entered into the accounts payable ledger






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






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






6. 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






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






8. 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






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






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






11. 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






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






13. A business that is owned by a single individual






14. Oversees the management of the company/corporation






15. 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






16. 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






17. Calculated by subtracting sales from the cogs






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






19. Net income is also known as this on an income statement






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






21. A number of owners join together and create one business in which they each own an agreed upon percentage






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






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






24. A partnership has a separate __________ and ____________ account for each partner






25. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale






26. 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






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






28. 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






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






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






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






32. Lists all vendors to whom your company has purchases






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






34. What are the three versions of simply accounting






35. Formula to calculate the net book value






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






37. First part of the income statement






38. Also know as the net book value






39. 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






40. Are not intended for resale






41. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______






42. 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






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






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






45. Two types of share capital accounts






46. One is maintained for all classes of capital assets






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






48. Documents issued by companies as evidence of transactions made






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






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