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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. What account is on the purchases and cash disbursements journals






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






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






4. 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






5. 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






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






7. 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






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






9. One is maintained for all classes of capital assets






10. 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






11. A legal document giving official permission to do something






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






13. 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






14. Consist of physical assets and non-physical or intangible properties






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






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






17. 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






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






19. Prepared by sole proprietors and partnerships






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






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






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






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






24. Account maintained for small purchases






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






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






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






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






29. Oversees the management of the company/corporation






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






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






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






35. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________






36. Are not intended for resale






37. 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.






38. Also know as the net book value






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






40. 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






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






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






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






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






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






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






47. All daily transactions are entered through these






48. A business that is owned by a single individual






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






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