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






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






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






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






5. All daily transactions are entered through these






6. Consist of physical assets and non-physical or intangible properties






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






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. Also know as the net book value






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






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






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






13. This business does not have a purchase account and no inventory is recorded on the balance sheet






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






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






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






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






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






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






21. Calculated by subtracting sales from the cogs






22. Are not intended for resale






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






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






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






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






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






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






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






30. Prepared by sole proprietors and partnerships






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






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






33. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory






34. Represents the assets on hand - the liabilities owed and the owners equity






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






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






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






38. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes






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






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






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






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






43. Documents issued by companies as evidence of transactions made






44. First part of the income statement






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






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.






47. What is used to reference a company's Canadian GST and HST






48. Formula to calculate the depreciation for the year






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






50. A business that offers services to the public