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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. 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.
Cost of Goods Sold
petty cash account
balance sheet
work in process inventory
2. Deposits that have not yet been deposited in the bank account
accounts payable ledger
bookkeeping
non-operating income
outstanding deposits
3. When you proceed to reconcile your bank account you will use these two things
current assets
cash receipts and cash disbursements journals
express or custom
general ledger trial balance
4. How often are the accounts payable entries entered into the accounts payable ledger
service company
management
daily
income statement
5. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
straight line depreciation
capital assets
modules
integration
6. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
declining balance method
Accounts Receivable Ledger
income after taxes
Sales
7. Account is reduced by the value of dividends paid to the shareholder
management
retained earnings account
bank reconciliation statement
earnings before interest and taxes
8. This business does not have a purchase account and no inventory is recorded on the balance sheet
petty cash record
service business
licenses
sole proprietorship
9. A business that is owned by a single individual
sales journal
bank reconciliation statement
purchase journal
sole proprietorship
10. 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
bookkeeping
purchase journal
cash receipts journal
integrated
11. 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 payable ledger
accounts receivable ledger
net value
accounts receivable
12. Includes the costs of all goods that are complete and ready for sale
service business
net income
integration
finished goods inventory
13. Has an indefinate life span and is not considered to reduce in value over time
manufacturing organizations
service company
land
net book value = original cost of asset - accumulated depreciation`
14. In a corporations books - the equity section is referred to as _________ ________
invoices
board of directors
Shareholders equity
proprietor
15. A separate one is maintained for each class of capital assets
accumulated depreciation account
accounts receivable ledger
merchandising business
modules
16. A record of a purchase made by a company - showing the terms and conditions for payment
accounts receivable ledger
purchase invoice
capital assets
Share capital accounts - retained earnings
17. Must have a useful life of more than one year
business number
integration
capital assets
residual value
18. 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
net value
land
accounts receivable ledger
purchase journal
19. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
Accounts Receivable Ledger
raw material inventory
patents
cash disbursements journal
20. Prepared by corporations - similar to a statement of owners equity
purchase invoice
cash receipts journal
statement of retained earnings
cash disbursements journal
21. Companies that transform raw materials into finished goods for sale
manufacturing organizations
corporation
Accounts Receivable Ledger
capital and drawings account
22. Represents the assets on hand - the liabilities owed and the owners equity
income tax expenses - income tax payable
income statement
integrated
balance sheet
23. Who makes the decision on the amount to keep in the petty cash account
daily
net income
capital assets
management
24. When a merchandising business prepares its income statement it includes a section called.....
Cost of Goods Sold
petty cash account
licenses
income after taxes
25. A business owned by one or more individuals who are known as shareholders
corporation
daily
accumulated depreciation account
reconciling the petty cash account
26. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
bank reconciliation statement
express or custom
accounts receivable ledger
capital account
27. Information from the purchase invoice is recorded In what journal
purchase journal
accounts receivable ledger trial balance
modules
management
28. Calculated from adding the non operating expenses to the net income
income before taxes
Shareholders equity
integrated
petty cash record
29. 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
bank reconciliation statement
Accounts Receivable Ledger
management
accounts payable and accrued expenses
30. Account used to record the net income that is retained in the business at the end of the year
land
integrated
retained earnings account
outstanding checks
31. This business purchases products from its vendors for resale to its customers
merchandising business
capital assets
gross margin
capital assets
32. Calculated by subtracting sales from the cogs
non-operating income
long term liabilities
gross margin
basic - pro - premium
33. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
drawings account
drawings - capital - Income Summary - capital
reconciling the petty cash account
service business
34. 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
modules
merchandising business
trial balance
outstanding checks
35. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
goodwill
raw material inventory
declining balance method
land
36. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
straight line depreciation
work in process inventory
general ledger trial balance
(cost of capital asset - residual value) / (expected useful life of capital asset)
37. All daily transactions are entered through these
partnership agreement
depreciation = net book value * %
retained earnings account
modules
38. Must be held for use in the production of goods and/or services
depreciation expense account
declining balance method
capital assets
service company
39. A word - symbol - design - or combination of these used to represent products or services provided by a company. It helps to distinguish products or services of one company from another
trademarks
accounts receivable
accounts payable ledger
goodwill
40. Net income is also known as this on an income statement
balance sheet
partnership agreement
petty cash record
earnings before interest and taxes
41. What are the three versions of simply accounting
non-operating income
balance sheet
basic - pro - premium
bookkeeping
42. One is maintained for all classes of capital assets
retained earnings account
net book value
depreciation expense account
capital assets
43. What account is on the purchases and cash disbursements journals
Accounts payable
capital assets
drawings account
Accounts Payable Ledger
44. The two start up methods on simply accountin through the set up wizard
invoices
general ledger trial balance
straight line depreciation
express or custom
45. 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
goodwill
land
capital assets
petty cash record
46. Two types of share capital accounts
current assets
raw material inventory
common share accounts - preferred share accounts
Share capital accounts - retained earnings
47. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
non-operating income
patents
income before taxes
Accounts Payable Ledger
48. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
capital assets
Cost of Goods Sold
net income
earnings before interest and taxes
49. Listed on the balance sheet are assets that can be turned into cash within one year
service business
current assets
capital and drawings account
straight line depreciation
50. A business that offers services to the public
service company
bookkeeping
Cost of Goods Sold
goodwill