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Test your basic knowledge |
Bookkeeping Advanced Vocab
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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. A number of owners join together and create one business in which they each own an agreed upon percentage
Shareholders equity
partnership
integrated
merchandising business
2. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
patents
land
proprietor
declining balance method
3. As a rule these should always be recorded on the balance sheet at cost
capital assets
accounts receivable ledger trial balance
Income Summary - revenue - expense - capital
daily
4. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
capital assets
patents
bookkeeping
outstanding deposits
5. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
general ledger trial balance
integration
work in process inventory
drawings account
6. 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
income after taxes
patents
petty cash account
accounts receivable ledger trial balance
7. In a corporations books - the equity section is referred to as _________ ________
general ledger trial balance
Sales
Shareholders equity
purchase journal
8. What are the three versions of simply accounting
capital and drawings account
basic - pro - premium
reconciling the petty cash account
accounts receivable ledger trial balance
9. Represents the assets on hand - the liabilities owed and the owners equity
balance sheet
capital assets
land
proprietor
10. 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
cash receipts journal
integrated
net book value = original cost of asset - accumulated depreciation`
land
11. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
raw material inventory
Accounts Receivable Ledger
depreciation expense account
current assets
12. Allows the company to not only maintain accurate records of purchases and payments - but also for future reference and for the audit of the company books at the end of the year
Share capital accounts - retained earnings
accounts payable ledger
depreciation = net book value * %
net value
13. Must be held for use in the production of goods and/or services
manufacturing organizations
capital assets
(cost of capital asset - residual value) / (expected useful life of capital asset)
integrated
14. All daily transactions are entered through these
income after taxes
capital account
modules
integrated
15. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
drawings - capital - Income Summary - capital
manufacturing organizations
Accounts Payable Ledger
capital assets
16. All the checks that have not appeared on the bank statement
outstanding checks
service business
trademarks
sales journal
17. Lists all customers and their outstanding balances for non cash or on account sales made
sole proprietorship
accounts receivable ledger
Accounts Payable Ledger
accounts payable ledger
18. This is reported after the net income on an income statement
business number
land
non-operating income
integration
19. The ledgers are linked to the general ledger by this process
capital and drawings account
cash receipts and cash disbursements journals
integration
statement of owners equity
20. Assets that have no physical form - but have value and are an integral part of the cost of doing business
accounts receivable
capital assets
intangible capital assets
manufacturing organizations
21. This business does not have a purchase account and no inventory is recorded on the balance sheet
management
land
service business
integration
22. Listed on the balance sheet are assets that can be turned into cash within one year
current assets
accounts payable and accrued expenses
patents
statement of retained earnings
23. Two types of share capital accounts
daily
Sales
(cost of capital asset - residual value) / (expected useful life of capital asset)
common share accounts - preferred share accounts
24. How often are the accounts payable entries entered into the accounts payable ledger
daily
gross margin
net book value
land
25. Information from the purchase invoice is recorded In what journal
accounts payable ledger
purchase journal
long term liabilities
accounts receivable
26. Account used to record the net income that is retained in the business at the end of the year
daily
common share accounts - preferred share accounts
management
retained earnings account
27. What is the formula for calculating straight-line depreciation
Sales
(cost of capital asset - residual value) / (expected useful life of capital asset)
invoices
petty cash account
28. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
net income
depreciation = net book value * %
general ledger trial balance
finished goods inventory
29. What is used to reference a company's Canadian GST and HST
business number
manufacturing organizations
sole proprietorship
income statement
30. Amounts owed by the company that are due within one year of the balance sheet date
Sales
current liabilities
capital assets
invoices
31. Formula to calculate the depreciation for the year
daily
statement of owners equity
depreciation = net book value * %
Cost of Goods Sold
32. Oversees the management of the company/corporation
partnership
board of directors
sales journal
balance sheet
33. A legal document giving official permission to do something
general ledger trial balance
bookkeeping
licenses
accumulated depreciation account
34. Consist of physical assets and non-physical or intangible properties
capital assets
non-operating income
daily
purchase journal
35. First part of the income statement
corporation
Cost of Goods Sold
Sales
net book value = original cost of asset - accumulated depreciation`
36. Formula to calculate the net book value
cash disbursements journal
Accounts Receivable Ledger
daily
net book value = original cost of asset - accumulated depreciation`
37. Used to write off the cost of an intangible capital asset
amortization
Cost of Goods Sold
capital assets
current assets
38. Documents issued by companies as evidence of transactions made
trademarks
accounts payable ledger
capital assets
invoices
39. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
accounts receivable ledger trial balance
Cost of Goods Sold
integration
trademarks
40. Information from the sales invoice is recorded In what journal
sales journal
licenses
Income Summary - revenue - expense - capital
cash disbursements journal
41. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
land
income tax expenses - income tax payable
partnership agreement
purchase invoice
42. This business purchases products from its vendors for resale to its customers
common share accounts - preferred share accounts
sales journal
petty cash account
merchandising business
43. Account is reduced by the value of dividends paid to the shareholder
capital assets
sales journal
retained earnings account
petty cash record
44. Account maintained for small purchases
statement of owners equity
accounts receivable ledger trial balance
depreciation
petty cash account
45. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
integrated
accumulated depreciation account
capital account
net book value
46. 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
accounts payable ledger
net income
land
47. When a merchandising business prepares its income statement it includes a section called.....
accounts payable ledger
net income
income tax expenses - income tax payable
Cost of Goods Sold
48. A business that is owned by a single individual
sales journal
sole proprietorship
Sales
Accounts Receivable Ledger
49. One is maintained for all classes of capital assets
depreciation expense account
depreciation
modules
accounts payable and accrued expenses
50. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
cash disbursements journal
capital and drawings account
net book value = original cost of asset - accumulated depreciation`
accounts receivable ledger trial balance