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






2. First part of the income statement






3. A business that offers services to the public






4. 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






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






6. 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






7. A list of all the disbursements made from your petty cash in the box with the receipts and the cash






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






9. Are not intended for resale






10. What account is on the cash receipts and sales journals






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






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






13. 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






14. Also know as the net book value






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






16. 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






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






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






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






20. 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






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






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






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






24. 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






25. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset






26. The ledgers are linked to the general ledger by this process






27. Account maintained for small purchases






28. 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






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






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






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






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






33. What are the three versions of simply accounting






34. 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






35. 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






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






37. 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






38. A business that is owned by a single individual






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






40. Lists all vendors to whom your company has purchases






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






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






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






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






45. 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.






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






47. Documents issued by companies as evidence of transactions made






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






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






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