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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. Are not intended for resale






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






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






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






5. 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






6. Account maintained for small purchases






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






8. 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






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






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






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






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






13. Lists all vendors to whom your company has purchases






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






15. Taxes are deducted from the income before taxes total on an income statement to come up with this total...






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






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






18. 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






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






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






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






22. Owner of a business owned by a single individual






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






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






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






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






27. 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.






28. You only have to enter business data once






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






30. Prepared by sole proprietors and partnerships






31. In this business there is usually one revenue account for each type of revenue earned - and there are various expense accounts where the costs of operating the business are recorded






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






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






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






35. When a merchandising business prepares its income statement it includes a section called.....






36. Deposits that have not yet been deposited in the bank account






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






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






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






40. 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






41. 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






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






43. 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






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






45. 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






46. Formula to calculate the depreciation for the year






47. All daily transactions are entered through these






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






49. Calculated by subtracting sales from the cogs






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