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






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






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






4. Also know as the net book value






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






6. 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






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






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






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






10. 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






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






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






13. 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






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






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






16. 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






17. 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






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






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






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






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






22. Includes all debt that is due in more than one year






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






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






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






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






27. Oversees the management of the company/corporation






28. Are not intended for resale






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






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






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






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






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






34. All daily transactions are entered through these






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






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






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






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






39. A business that is owned by a single individual






40. 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






41. Documents issued by companies as evidence of transactions made






42. Calculated by subtracting sales from the cogs






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






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






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






46. A legal document giving official permission to do something






47. 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






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






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






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