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Test your basic knowledge |
Bookkeeping Advanced Vocab
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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. Account used to record the net income that is retained in the business at the end of the year
bookkeeping
land
service business
retained earnings account
2. Used to write off the cost of an intangible capital asset
Share capital accounts - retained earnings
amortization
integration
accounts receivable ledger
3. All daily transactions are entered through these
raw material inventory
modules
depreciation expense account
net book value = original cost of asset - accumulated depreciation`
4. Formula to calculate the net book value
net book value = original cost of asset - accumulated depreciation`
accounts receivable ledger
integrated
accumulated depreciation account
5. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
accounts receivable ledger
Accounts payable
depreciation = net book value * %
purchase invoice
6. Prepared by sole proprietors and partnerships
income after taxes
capital assets
statement of owners equity
drawings account
7. Are not intended for resale
service company
proprietor
common share accounts - preferred share accounts
capital assets
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
amortization
capital account
trademarks
capital assets
9. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
current liabilities
corporation
service company
depreciation
10. A record of a purchase made by a company - showing the terms and conditions for payment
drawings account
purchase invoice
Accounts Receivable Ledger
land
11. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
capital assets
income tax expenses - income tax payable
residual value
balance sheet
12. This business purchases products from its vendors for resale to its customers
merchandising business
reconciling the petty cash account
residual value
capital assets
13. Assets that have no physical form - but have value and are an integral part of the cost of doing business
proprietor
service business
express or custom
intangible capital assets
14. Amounts owed by the company that are due within one year of the balance sheet date
net income
capital and drawings account
current liabilities
petty cash account
15. 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
declining balance method
Shareholders equity
land
patents
16. Calculated by subtracting sales from the cogs
non-operating income
service business
depreciation
gross margin
17. When you proceed to reconcile your bank account you will use these two things
partnership agreement
cash receipts and cash disbursements journals
Accounts Payable Ledger
outstanding deposits
18. This business does not have a purchase account and no inventory is recorded on the balance sheet
work in process inventory
cash receipts journal
common share accounts - preferred share accounts
service business
19. When a merchandising business prepares its income statement it includes a section called.....
express or custom
board of directors
cash disbursements journal
Cost of Goods Sold
20. 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
depreciation expense account
proprietor
trademarks
income before taxes
21. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
income after taxes
declining balance method
net income
daily
22. Includes all debt that is due in more than one year
Accounts payable
management
long term liabilities
modules
23. Signed by all partners in a partneship to establish rules about how the business is going to be run
partnership agreement
accounts receivable ledger
land
capital assets
24. A separate one is maintained for each class of capital assets
gross margin
accumulated depreciation account
licenses
sole proprietorship
25. 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
service business
reconciling the petty cash account
outstanding deposits
accumulated depreciation account
26. A business owned by one or more individuals who are known as shareholders
service business
capital assets
corporation
retained earnings account
27. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
reconciling the petty cash account
net income
income after taxes
merchandising business
28. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
trial balance
integration
straight line depreciation
business number
29. Must have a useful life of more than one year
residual value
balance sheet
capital assets
current assets
30. Shows how much income has been earned b the business during the time period
petty cash record
long term liabilities
income statement
express or custom
31. 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
goodwill
bookkeeping
reconciling the petty cash account
Accounts Receivable Ledger
32. What are the three versions of simply accounting
basic - pro - premium
petty cash account
purchase journal
proprietor
33. A business that offers services to the public
partnership agreement
income after taxes
board of directors
service company
34. Documents issued by companies as evidence of transactions made
bank reconciliation statement
accounts receivable
Accounts Receivable Ledger
invoices
35. First part of the income statement
Sales
balance sheet
capital assets
declining balance method
36. 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
intangible capital assets
outstanding checks
cash receipts journal
accounts payable and accrued expenses
37. Listed on the balance sheet are assets that can be turned into cash within one year
outstanding checks
board of directors
capital assets
current assets
38. 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 ledger trial balance
Accounts Receivable Ledger
declining balance method
depreciation expense account
39. What is the formula for calculating straight-line depreciation
capital assets
(cost of capital asset - residual value) / (expected useful life of capital asset)
depreciation expense account
integration
40. 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
bank reconciliation statement
purchase invoice
service company
capital assets
41. One is maintained for all classes of capital assets
intangible capital assets
depreciation expense account
current assets
raw material inventory
42. The ledgers are linked to the general ledger by this process
net value
finished goods inventory
integration
petty cash account
43. Lists all vendors to whom your company has purchases
partnership agreement
land
cash receipts journal
Accounts Payable Ledger
44. Also know as the net book value
net value
patents
retained earnings account
management
45. Companies that transform raw materials into finished goods for sale
manufacturing organizations
work in process inventory
current liabilities
Accounts Payable Ledger
46. Owner of a business owned by a single individual
capital assets
raw material inventory
gross margin
proprietor
47. 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
accounts receivable ledger
corporation
Income Summary - revenue - expense - capital
retained earnings account
48. Account is reduced by the value of dividends paid to the shareholder
corporation
long term liabilities
purchase invoice
retained earnings account
49. Must be held for use in the production of goods and/or services
manufacturing organizations
partnership
capital assets
outstanding deposits
50. 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
income after taxes
net book value = original cost of asset - accumulated depreciation`
drawings - capital - Income Summary - capital
residual value