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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 recording the transactions and financial activities of a business






2. Two types of share capital accounts






3. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset






4. Also know as the net book value






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






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






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






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






9. 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






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






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






12. Net income is also known as this on an income statement






13. 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






14. Represents the expected value of the asset at the end of its useful life to the business






15. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing






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






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






18. Assets that have no physical form - but have value and are an integral part of the cost of doing business






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






20. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention






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






22. 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






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






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






25. Documents issued by companies as evidence of transactions made






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






27. 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






28. 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






29. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






31. First part of the income statement






32. 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






33. Owner of a business owned by a single individual






34. The two start up methods on simply accountin through the set up wizard






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






36. 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.






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






38. One is maintained for all classes of capital assets






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






40. Are not intended for resale






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






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






43. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared






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






45. Amounts owed by the company that are due within one year of the balance sheet date






46. All daily transactions are entered through these






47. This business purchases products from its vendors for resale to its customers






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






49. Account maintained for small purchases






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