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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. Owner of a business owned by a single individual






2. When you proceed to reconcile your bank account you will use these two things






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






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






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






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






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






8. A business that is owned by a single individual






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






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






11. 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






12. One is maintained for all classes of capital assets






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






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






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






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






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






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






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






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






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






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






23. Two types of share capital accounts






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






25. 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






26. 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.






27. 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






28. 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






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






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






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






32. The two start up methods on simply accountin through the set up wizard






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






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






35. Also know as the net book value






36. 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






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






38. Lists all vendors to whom your company has purchases






39. Represents the assets on hand - the liabilities owed and the owners equity






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






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






42. 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






43. 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






44. First part of the income statement






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






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






47. Formula to calculate the net book value






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






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






50. 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