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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. A business that offers services to the public






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






3. One is maintained for all classes of capital assets






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






6. 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






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






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






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






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






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






12. Lists all customers and their outstanding balances for non cash or on account sales made






13. All daily transactions are entered through these






14. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes






15. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory






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






17. 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






18. The process of comparing the cash plus receipts to the original balance int he account






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






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






21. 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






22. 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






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






24. 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






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






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






27. You only have to enter business data once






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






29. 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






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






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






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






33. 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.






34. A record of a purchase made by a company - showing the terms and conditions for payment






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






36. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing






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






38. First part of the income statement






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






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






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






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






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






44. Lists all vendors to whom your company has purchases






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






46. Oversees the management of the company/corporation






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






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






49. Formula to calculate the depreciation for the year






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