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Test your basic knowledge |
Bookkeeping Advanced Vocab
Start Test
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. Represents the assets on hand - the liabilities owed and the owners equity
retained earnings account
partnership
balance sheet
non-operating income
2. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
partnership agreement
Share capital accounts - retained earnings
income tax expenses - income tax payable
long term liabilities
3. Oversees the management of the company/corporation
board of directors
Cost of Goods Sold
accounts receivable ledger trial balance
integration
4. 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
basic - pro - premium
retained earnings account
capital assets
trademarks
5. What is used to reference a company's Canadian GST and HST
business number
current liabilities
service business
Income Summary - revenue - expense - capital
6. This business does not have a purchase account and no inventory is recorded on the balance sheet
service business
proprietor
licenses
income before taxes
7. As a rule these should always be recorded on the balance sheet at cost
Shareholders equity
reconciling the petty cash account
depreciation = net book value * %
capital assets
8. Account maintained for small purchases
petty cash account
patents
(cost of capital asset - residual value) / (expected useful life of capital asset)
long term liabilities
9. Represents the expected value of the asset at the end of its useful life to the business
basic - pro - premium
capital assets
residual value
current liabilities
10. In a corporations books - the equity section is referred to as _________ ________
licenses
Shareholders equity
statement of retained earnings
drawings account
11. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
petty cash account
accounts payable ledger
Accounts payable
straight line depreciation
12. All daily transactions are entered through these
modules
finished goods inventory
purchase journal
general ledger trial balance
13. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
net income
basic - pro - premium
net value
Accounts Payable Ledger
14. A business that offers services to the public
outstanding deposits
Share capital accounts - retained earnings
service company
goodwill
15. Information from the purchase invoice is recorded In what journal
amortization
purchase journal
trial balance
reconciling the petty cash account
16. A business owned by one or more individuals who are known as shareholders
corporation
service business
net income
gross margin
17. 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.
intangible capital assets
work in process inventory
land
capital assets
18. Are not intended for resale
trial balance
accounts payable and accrued expenses
capital assets
earnings before interest and taxes
19. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
capital and drawings account
cash disbursements journal
gross margin
Share capital accounts - retained earnings
20. The two start up methods on simply accountin through the set up wizard
amortization
service business
express or custom
depreciation
21. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
Accounts Receivable Ledger
cash receipts and cash disbursements journals
residual value
service business
22. Amounts owed by the company that are due within one year of the balance sheet date
land
current liabilities
management
integrated
23. Account used to record the net income that is retained in the business at the end of the year
retained earnings account
depreciation
bank reconciliation statement
Accounts Payable Ledger
24. A business that is owned by a single individual
net book value = original cost of asset - accumulated depreciation`
common share accounts - preferred share accounts
sole proprietorship
capital assets
25. A legal document giving official permission to do something
licenses
accounts receivable ledger
sales journal
capital assets
26. Formula to calculate the depreciation for the year
purchase invoice
depreciation = net book value * %
capital assets
outstanding checks
27. What are the three versions of simply accounting
capital assets
basic - pro - premium
accounts receivable
proprietor
28. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
patents
net book value
Shareholders equity
service company
29. Calculated from adding the non operating expenses to the net income
balance sheet
income before taxes
Shareholders equity
Accounts Payable Ledger
30. Formula to calculate the net book value
proprietor
capital assets
net book value
net book value = original cost of asset - accumulated depreciation`
31. Signed by all partners in a partneship to establish rules about how the business is going to be run
modules
drawings - capital - Income Summary - capital
partnership agreement
petty cash record
32. Lists all customers and their outstanding balances for non cash or on account sales made
accounts receivable ledger
modules
amortization
trial balance
33. Includes the costs of all goods that are complete and ready for sale
manufacturing organizations
integrated
income tax expenses - income tax payable
finished goods inventory
34. Shareholders equity contains two different types of accounts.... What are they
general ledger trial balance
trademarks
Share capital accounts - retained earnings
bank reconciliation statement
35. Must have a useful life of more than one year
Share capital accounts - retained earnings
manufacturing organizations
capital assets
current assets
36. The ledgers are linked to the general ledger by this process
goodwill
capital and drawings account
integration
reconciling the petty cash account
37. One is maintained for all classes of capital assets
depreciation expense account
drawings - capital - Income Summary - capital
licenses
cash receipts journal
38. Assets that have no physical form - but have value and are an integral part of the cost of doing business
intangible capital assets
current liabilities
partnership agreement
income before taxes
39. 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
drawings account
Income Summary - revenue - expense - capital
merchandising business
Cost of Goods Sold
40. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
service business
Accounts Payable Ledger
residual value
long term liabilities
41. Who makes the decision on the amount to keep in the petty cash account
depreciation expense account
net value
Accounts Payable Ledger
management
42. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
capital assets
land
(cost of capital asset - residual value) / (expected useful life of capital asset)
general ledger trial balance
43. What account is on the purchases and cash disbursements journals
petty cash record
Accounts payable
net book value = original cost of asset - accumulated depreciation`
trademarks
44. When you proceed to reconcile your bank account you will use these two things
statement of owners equity
goodwill
cash receipts and cash disbursements journals
accumulated depreciation account
45. A separate one is maintained for each class of capital assets
Share capital accounts - retained earnings
depreciation expense account
accumulated depreciation account
corporation
46. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
management
current assets
accounts receivable ledger
Cost of Goods Sold
47. 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
accounts payable and accrued expenses
accumulated depreciation account
capital assets
capital assets
48. All the checks that have not appeared on the bank statement
outstanding checks
cash receipts and cash disbursements journals
residual value
licenses
49. Prepared by sole proprietors and partnerships
statement of owners equity
gross margin
petty cash account
reconciling the petty cash account
50. Two types of share capital accounts
licenses
common share accounts - preferred share accounts
accounts receivable ledger trial balance
residual value