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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. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
common share accounts - preferred share accounts
patents
work in process inventory
accounts receivable ledger
2. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
outstanding checks
Accounts payable
raw material inventory
long term liabilities
3. A separate one is maintained for each class of capital assets
raw material inventory
current assets
partnership
accumulated depreciation account
4. Has an indefinate life span and is not considered to reduce in value over time
land
gross margin
proprietor
Accounts Payable Ledger
5. All daily transactions are entered through these
integrated
modules
capital assets
current liabilities
6. Consist of physical assets and non-physical or intangible properties
purchase journal
sole proprietorship
capital assets
accounts receivable ledger
7. 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
accounts receivable ledger trial balance
accumulated depreciation account
trademarks
capital assets
8. 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
net value
outstanding deposits
amortization
bank reconciliation statement
9. Also know as the net book value
land
board of directors
net value
invoices
10. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
trademarks
income tax expenses - income tax payable
goodwill
Accounts Payable Ledger
11. As a rule these should always be recorded on the balance sheet at cost
capital assets
income before taxes
petty cash record
general ledger trial balance
12. Calculated from adding the non operating expenses to the net income
balance sheet
trial balance
finished goods inventory
income before taxes
13. This business does not have a purchase account and no inventory is recorded on the balance sheet
gross margin
balance sheet
income statement
service business
14. Who makes the decision on the amount to keep in the petty cash account
income statement
retained earnings account
management
land
15. 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
accounts payable and accrued expenses
capital assets
basic - pro - premium
Income Summary - revenue - expense - capital
16. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
service business
(cost of capital asset - residual value) / (expected useful life of capital asset)
Accounts Receivable Ledger
basic - pro - premium
17. 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
accounts payable ledger
drawings - capital - Income Summary - capital
long term liabilities
net book value
18. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
accounts payable ledger
drawings account
accounts receivable ledger trial balance
outstanding checks
19. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
board of directors
manufacturing organizations
net income
residual value
20. 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
land
accounts receivable ledger trial balance
net income
Accounts Receivable Ledger
21. Calculated by subtracting sales from the cogs
goodwill
income after taxes
balance sheet
gross margin
22. Are not intended for resale
integrated
capital assets
purchase invoice
sole proprietorship
23. Shows how much income has been earned b the business during the time period
income statement
current assets
depreciation expense account
Accounts Payable Ledger
24. Information from the purchase invoice is recorded In what journal
accounts payable ledger
finished goods inventory
current liabilities
purchase journal
25. Prepared by corporations - similar to a statement of owners equity
declining balance method
statement of retained earnings
land
Accounts Payable Ledger
26. Information from the sales invoice is recorded In what journal
Share capital accounts - retained earnings
sales journal
straight line depreciation
capital assets
27. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
straight line depreciation
Accounts Receivable Ledger
earnings before interest and taxes
accounts receivable ledger trial balance
28. Represents the expected value of the asset at the end of its useful life to the business
residual value
management
land
capital assets
29. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
capital account
depreciation
current assets
capital assets
30. Prepared by sole proprietors and partnerships
licenses
Cost of Goods Sold
land
statement of owners equity
31. Net income is also known as this on an income statement
accounts receivable ledger trial balance
net value
business number
earnings before interest and taxes
32. A record of a purchase made by a company - showing the terms and conditions for payment
purchase invoice
integration
Cost of Goods Sold
bookkeeping
33. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
finished goods inventory
Cost of Goods Sold
net value
partnership agreement
34. Represents the assets on hand - the liabilities owed and the owners equity
Accounts Payable Ledger
balance sheet
net value
drawings account
35. When a merchandising business prepares its income statement it includes a section called.....
sole proprietorship
Cost of Goods Sold
bank reconciliation statement
amortization
36. 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
Income Summary - revenue - expense - capital
accounts payable and accrued expenses
raw material inventory
licenses
37. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
integration
bookkeeping
service business
depreciation
38. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
Sales
accounts payable and accrued expenses
Shareholders equity
cash disbursements journal
39. A partnership has a separate __________ and ____________ account for each partner
depreciation expense account
capital and drawings account
net income
Cost of Goods Sold
40. How often are the accounts payable entries entered into the accounts payable ledger
Accounts Payable Ledger
proprietor
income tax expenses - income tax payable
daily
41. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
income after taxes
cash disbursements journal
land
integration
42. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
declining balance method
trial balance
statement of owners equity
partnership agreement
43. Documents issued by companies as evidence of transactions made
sales journal
outstanding deposits
capital assets
invoices
44. First part of the income statement
Sales
net book value = original cost of asset - accumulated depreciation`
service business
Accounts Receivable Ledger
45. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
patents
accounts payable and accrued expenses
net book value
trial balance
46. 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.
service business
outstanding checks
work in process inventory
cash receipts journal
47. What is used to reference a company's Canadian GST and HST
net book value = original cost of asset - accumulated depreciation`
land
business number
net income
48. Formula to calculate the depreciation for the year
Cost of Goods Sold
depreciation expense account
land
depreciation = net book value * %
49. 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
trial balance
retained earnings account
bookkeeping
cash receipts journal
50. A business that offers services to the public
corporation
retained earnings account
outstanding checks
service company