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






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






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






5. Also know as the net book value






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






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






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






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






10. First part of the income statement






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






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






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






14. Owner of a business owned by a single individual






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






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






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






18. A legal document giving official permission to do something






19. What are the three versions of simply accounting






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






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






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






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






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






25. One is maintained for all classes of capital assets






26. 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






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






28. Must be held for use in the production of goods and/or services






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






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






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






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






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






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






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






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






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






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






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






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






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






42. You only have to enter business data once






43. Account maintained for small purchases






44. 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.






45. Prepared by sole proprietors and partnerships






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






47. Are not intended for resale






48. 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






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