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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 a merchandising business prepares its income statement it includes a section called.....






2. Calculated by subtracting sales from the cogs






3. Prepared by corporations - similar to a statement of owners equity






4. As a rule these should always be recorded on the balance sheet at cost






5. 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






6. A business owned by one or more individuals who are known as shareholders






7. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers






8. A partnership has a separate __________ and ____________ account for each partner






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






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






11. Taxes are deducted from the income before taxes total on an income statement to come up with this total...






12. All daily transactions are entered through these






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






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






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






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






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






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






19. 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






20. 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






21. Lists all vendors to whom your company has purchases






22. One is maintained for all classes of capital assets






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






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






25. What are the three versions of simply accounting






26. 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.






27. First part of the income statement






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






29. 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






30. A business that is owned by a single individual






31. Owner of a business owned by a single individual






32. 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






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






34. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset






35. Two types of share capital accounts






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






37. A record of a purchase made by a company - showing the terms and conditions for payment






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






39. 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






40. 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






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






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






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






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






45. Account maintained for small purchases






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






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






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






49. Companies that transform raw materials into finished goods for sale






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