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Test your basic knowledge |
Bookkeeping Advanced Vocab
Start Test
Study First
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. You only have to enter business data once
outstanding deposits
purchase journal
integrated
modules
2. This business purchases products from its vendors for resale to its customers
merchandising business
trademarks
income statement
purchase invoice
3. Companies that transform raw materials into finished goods for sale
manufacturing organizations
land
finished goods inventory
depreciation expense account
4. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
work in process inventory
outstanding checks
partnership
income tax expenses - income tax payable
5. The process of comparing the cash plus receipts to the original balance int he account
service business
drawings account
non-operating income
reconciling the petty cash account
6. What are the three versions of simply accounting
basic - pro - premium
Cost of Goods Sold
corporation
cash disbursements journal
7. Represents the assets on hand - the liabilities owed and the owners equity
gross margin
retained earnings account
balance sheet
Shareholders equity
8. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
accumulated depreciation account
sales journal
net income
Accounts Receivable Ledger
9. 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
petty cash record
management
trial balance
Cost of Goods Sold
10. Account is reduced by the value of dividends paid to the shareholder
statement of retained earnings
gross margin
residual value
retained earnings account
11. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
purchase journal
net book value
proprietor
basic - pro - premium
12. A business owned by one or more individuals who are known as shareholders
purchase journal
income statement
corporation
Accounts Payable Ledger
13. What account is on the purchases and cash disbursements journals
Income Summary - revenue - expense - capital
integration
net value
Accounts payable
14. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
service company
accounts payable and accrued expenses
work in process inventory
Accounts Payable Ledger
15. Account maintained for small purchases
Cost of Goods Sold
licenses
long term liabilities
petty cash account
16. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
current assets
outstanding deposits
Accounts payable
straight line depreciation
17. Formula to calculate the net book value
net book value = original cost of asset - accumulated depreciation`
income after taxes
finished goods inventory
purchase invoice
18. A legal document giving official permission to do something
licenses
purchase journal
net value
capital assets
19. 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
statement of owners equity
trademarks
accounts payable and accrued expenses
purchase journal
20. The two start up methods on simply accountin through the set up wizard
express or custom
management
capital account
board of directors
21. Has an indefinate life span and is not considered to reduce in value over time
land
Accounts Payable Ledger
finished goods inventory
drawings - capital - Income Summary - capital
22. 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
land
goodwill
merchandising business
Sales
23. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
purchase invoice
depreciation
capital account
income statement
24. When a merchandising business prepares its income statement it includes a section called.....
Accounts Payable Ledger
Cost of Goods Sold
residual value
cash receipts journal
25. Includes the costs of all goods that are complete and ready for sale
drawings account
reconciling the petty cash account
(cost of capital asset - residual value) / (expected useful life of capital asset)
finished goods inventory
26. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
capital assets
manufacturing organizations
outstanding checks
general ledger trial balance
27. Lists all customers and their outstanding balances for non cash or on account sales made
balance sheet
manufacturing organizations
accounts receivable ledger
depreciation
28. Lists all vendors to whom your company has purchases
basic - pro - premium
amortization
Accounts Payable Ledger
statement of owners equity
29. Shows how much income has been earned b the business during the time period
outstanding checks
raw material inventory
income after taxes
income statement
30. Prepared by corporations - similar to a statement of owners equity
trademarks
net book value
statement of retained earnings
modules
31. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
outstanding checks
raw material inventory
straight line depreciation
accounts receivable ledger
32. Assets that have no physical form - but have value and are an integral part of the cost of doing business
long term liabilities
capital assets
intangible capital assets
integrated
33. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
accumulated depreciation account
Cost of Goods Sold
service company
Share capital accounts - retained earnings
34. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
income tax expenses - income tax payable
capital assets
Accounts payable
patents
35. Net income is also known as this on an income statement
basic - pro - premium
accounts receivable ledger trial balance
sales journal
earnings before interest and taxes
36. Are not intended for resale
capital assets
service company
daily
retained earnings account
37. 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
modules
drawings - capital - Income Summary - capital
licenses
statement of owners equity
38. This is reported after the net income on an income statement
outstanding checks
statement of owners equity
service company
non-operating income
39. 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.
work in process inventory
income statement
sole proprietorship
long term liabilities
40. 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
sales journal
accounts payable and accrued expenses
retained earnings account
partnership
41. Two types of share capital accounts
capital assets
express or custom
income statement
common share accounts - preferred share accounts
42. Deposits that have not yet been deposited in the bank account
invoices
statement of owners equity
outstanding deposits
capital assets
43. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
accounts receivable
partnership agreement
Accounts Receivable Ledger
non-operating income
44. Must be held for use in the production of goods and/or services
Accounts Receivable Ledger
general ledger trial balance
trial balance
capital assets
45. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
depreciation
Shareholders equity
(cost of capital asset - residual value) / (expected useful life of capital asset)
business number
46. Formula to calculate the depreciation for the year
bank reconciliation statement
basic - pro - premium
depreciation = net book value * %
capital assets
47. As a rule these should always be recorded on the balance sheet at cost
corporation
basic - pro - premium
retained earnings account
capital assets
48. Account used to record the net income that is retained in the business at the end of the year
Income Summary - revenue - expense - capital
statement of retained earnings
retained earnings account
Sales
49. Shareholders equity contains two different types of accounts.... What are they
Share capital accounts - retained earnings
sole proprietorship
modules
non-operating income
50. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
Accounts Receivable Ledger
cash disbursements journal
partnership
service business