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






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






3. First part of the income statement






4. 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






5. Includes all debt that is due in more than one year






6. Also know as the net book value






7. 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






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






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






10. Two types of share capital accounts






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






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






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






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






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






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






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






18. Account is reduced by the value of dividends paid to the shareholder






19. All daily transactions are entered through these






20. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______






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






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






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






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






25. Formula to calculate the net book value






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






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






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






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






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






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






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






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






34. Owner of a business owned by a single individual






35. Are not intended for resale






36. 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






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






38. A business that is owned by a single individual






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






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






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






42. What are the three versions of simply accounting






43. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement






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






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






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






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






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






49. 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.






50. 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