Test your basic knowledge |

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. 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






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






3. Account used to record the net income that is retained in the business at the end of the year






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






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






6. Documents issued by companies as evidence of transactions made






7. One is maintained for all classes of capital assets






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






9. 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






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






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






12. You only have to enter business data once






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






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






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






16. Account maintained for small purchases






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






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






19. 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






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






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






22. All daily transactions are entered through these






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






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






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






26. Calculated by subtracting sales from the cogs






27. In a corporations books - the equity section is referred to as _________ ________






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






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






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






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






32. Two types of share capital accounts






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






34. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers






35. What are the three versions of simply accounting






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






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






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






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






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






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






42. A business owned by one or more individuals who are known as shareholders






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






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






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






46. Lists all vendors to whom your company has purchases






47. 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.






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






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






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