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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. 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.






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






3. Lists all vendors to whom your company has purchases






4. What account is on the cash receipts and sales journals






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






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






7. Prepared by sole proprietors and partnerships






8. Two types of share capital accounts






9. An intangible asset that represents the value of a company's name - customer service - staff - and other factors - the buyer of a business is often willing to pay for this asset in addition to the value of its other assets






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






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






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






13. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset






14. A list of all the disbursements made from your petty cash in the box with the receipts and the cash






15. Shows how much income has been earned b the business during the time period






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






17. Signed by all partners in a partneship to establish rules about how the business is going to be run






18. Prepared for each bank account - each month - to allow companies to verify that the company's bank account is accurate and all the items on the Statement of Account belong to the company and are reflected in the company records






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






20. 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






21. 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






22. Must have a useful life of more than one year






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






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






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






26. Formula to calculate the depreciation for the year






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






28. A business that is owned by a single individual






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






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






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






32. Shareholders equity contains two different types of accounts.... What are they






33. 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






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






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






36. A legal document giving official permission to do something






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






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






39. Oversees the management of the company/corporation






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






41. Owner of a business owned by a single individual






42. Are not intended for resale






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






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






45. What is used to reference a company's Canadian GST and HST






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






47. Also know as the net book value






48. Account maintained for small purchases






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






50. Who makes the decision on the amount to keep in the petty cash account