SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. When a merchandising business prepares its income statement it includes a section called.....
raw material inventory
Cost of Goods Sold
trademarks
income after taxes
2. A separate one is maintained for each class of capital assets
accumulated depreciation account
work in process inventory
licenses
residual value
3. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
Cost of Goods Sold
non-operating income
statement of retained earnings
accounts payable ledger
4. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
service business
common share accounts - preferred share accounts
income after taxes
outstanding deposits
5. Also know as the net book value
express or custom
net value
service company
sales journal
6. Signed by all partners in a partneship to establish rules about how the business is going to be run
Shareholders equity
common share accounts - preferred share accounts
accounts receivable ledger
partnership agreement
7. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
board of directors
current liabilities
net income
net value
8. Used to write off the cost of an intangible capital asset
amortization
earnings before interest and taxes
accounts payable ledger
income statement
9. Information from the sales invoice is recorded In what journal
Accounts Payable Ledger
sales journal
service business
partnership
10. First part of the income statement
Accounts Receivable Ledger
depreciation expense account
daily
Sales
11. Who makes the decision on the amount to keep in the petty cash account
residual value
management
income tax expenses - income tax payable
business number
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
accounts receivable ledger
purchase journal
balance sheet
reconciling the petty cash account
13. Listed on the balance sheet are assets that can be turned into cash within one year
invoices
retained earnings account
current assets
general ledger trial balance
14. Owner of a business owned by a single individual
income statement
daily
intangible capital assets
proprietor
15. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
Accounts Payable Ledger
modules
bookkeeping
net value
16. Shows how much income has been earned b the business during the time period
income statement
balance sheet
service company
net book value = original cost of asset - accumulated depreciation`
17. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
express or custom
cash disbursements journal
capital assets
statement of retained earnings
18. A legal document giving official permission to do something
accounts receivable ledger
statement of retained earnings
licenses
Shareholders equity
19. What are the three versions of simply accounting
balance sheet
amortization
retained earnings account
basic - pro - premium
20. Prepared by corporations - similar to a statement of owners equity
trial balance
proprietor
statement of retained earnings
cash receipts journal
21. Calculated from adding the non operating expenses to the net income
reconciling the petty cash account
Accounts Payable Ledger
income before taxes
trial balance
22. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
partnership
capital and drawings account
business number
depreciation
23. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
integrated
capital and drawings account
general ledger trial balance
Accounts Payable Ledger
24. The process of comparing the cash plus receipts to the original balance int he account
depreciation = net book value * %
accounts receivable ledger trial balance
reconciling the petty cash account
partnership agreement
25. One is maintained for all classes of capital assets
income tax expenses - income tax payable
corporation
depreciation expense account
outstanding deposits
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
cash receipts journal
capital assets
accounts payable and accrued expenses
income after taxes
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
income tax expenses - income tax payable
integrated
net income
accounts receivable
28. Must be held for use in the production of goods and/or services
drawings - capital - Income Summary - capital
capital assets
Sales
Shareholders equity
29. Assets that have no physical form - but have value and are an integral part of the cost of doing business
intangible capital assets
sales journal
reconciling the petty cash account
general ledger trial balance
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
retained earnings account
straight line depreciation
capital assets
basic - pro - premium
31. In a corporations books - the equity section is referred to as _________ ________
accounts receivable
Sales
Accounts Payable Ledger
Shareholders equity
32. What is the formula for calculating straight-line depreciation
current liabilities
service business
invoices
(cost of capital asset - residual value) / (expected useful life of capital asset)
33. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
long term liabilities
patents
Sales
statement of retained earnings
34. Amounts owed by the company that are due within one year of the balance sheet date
straight line depreciation
current liabilities
income statement
patents
35. What is used to reference a company's Canadian GST and HST
Accounts Payable Ledger
current liabilities
daily
business number
36. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
Accounts Receivable Ledger
depreciation = net book value * %
capital assets
corporation
37. What account is on the purchases and cash disbursements journals
Accounts payable
petty cash record
long term liabilities
drawings account
38. Includes the costs of all goods that are complete and ready for sale
finished goods inventory
capital and drawings account
trial balance
accounts receivable ledger trial balance
39. How often are the accounts payable entries entered into the accounts payable ledger
capital assets
income tax expenses - income tax payable
daily
Accounts Receivable Ledger
40. A record of a purchase made by a company - showing the terms and conditions for payment
integration
capital assets
non-operating income
purchase invoice
41. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
common share accounts - preferred share accounts
integrated
declining balance method
reconciling the petty cash account
42. You only have to enter business data once
common share accounts - preferred share accounts
integrated
manufacturing organizations
capital and drawings account
43. Account maintained for small purchases
drawings - capital - Income Summary - capital
petty cash account
land
daily
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.
gross margin
service company
work in process inventory
income tax expenses - income tax payable
45. Prepared by sole proprietors and partnerships
capital assets
accounts receivable ledger trial balance
statement of owners equity
capital assets
46. Must have a useful life of more than one year
capital assets
depreciation expense account
income tax expenses - income tax payable
declining balance method
47. Are not intended for resale
purchase invoice
accounts receivable ledger
trial balance
capital assets
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
accounts receivable ledger trial balance
residual value
capital and drawings account
Cost of Goods Sold
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
reconciling the petty cash account
Shareholders equity
accounts receivable ledger
cash receipts journal
50. Has an indefinate life span and is not considered to reduce in value over time
service business
licenses
trademarks
land