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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 purchases products from its vendors for resale to its customers






2. 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






3. 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






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






5. Oversees the management of the company/corporation






6. Also know as the net book value






7. Prepared by sole proprietors and partnerships






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






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






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






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






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






13. 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






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






15. 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






16. A number of owners join together and create one business in which they each own an agreed upon percentage






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






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






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






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






21. Calculated by subtracting sales from the cogs






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






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






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






25. What are the three versions of simply accounting






26. A business that is owned by a single individual






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






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






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






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






31. The process of recording the transactions and financial activities of a business






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






33. A legal document giving official permission to do something






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






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






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






37. 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






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






39. Are not intended for resale






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






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






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






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






44. 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






45. The ledgers are linked to the general ledger by this process






46. You only have to enter business data once






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






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






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






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