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Test your basic knowledge |
Bookkeeping Advanced Vocab
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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. 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
cash receipts journal
capital assets
Cost of Goods Sold
Share capital accounts - retained earnings
2. Companies that transform raw materials into finished goods for sale
land
outstanding deposits
manufacturing organizations
reconciling the petty cash account
3. Lists all vendors to whom your company has purchases
petty cash account
accumulated depreciation account
trademarks
Accounts Payable Ledger
4. Lists all customers and their outstanding balances for non cash or on account sales made
trademarks
accounts receivable ledger
work in process inventory
Income Summary - revenue - expense - capital
5. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
Accounts Receivable Ledger
Accounts payable
raw material inventory
amortization
6. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
common share accounts - preferred share accounts
statement of owners equity
retained earnings account
Accounts Payable Ledger
7. How often are the accounts payable entries entered into the accounts payable ledger
daily
income tax expenses - income tax payable
raw material inventory
Accounts Payable Ledger
8. 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
management
proprietor
integrated
service business
9. As a rule these should always be recorded on the balance sheet at cost
purchase journal
Share capital accounts - retained earnings
capital assets
current liabilities
10. Account is reduced by the value of dividends paid to the shareholder
invoices
accumulated depreciation account
retained earnings account
net book value = original cost of asset - accumulated depreciation`
11. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
bank reconciliation statement
net income
retained earnings account
service business
12. The ledgers are linked to the general ledger by this process
statement of owners equity
integration
retained earnings account
residual value
13. Oversees the management of the company/corporation
Accounts Receivable Ledger
declining balance method
accounts payable ledger
board of directors
14. Net income is also known as this on an income statement
current assets
capital assets
earnings before interest and taxes
merchandising business
15. 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
accounts payable ledger
depreciation expense account
balance sheet
intangible capital assets
16. 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.
drawings account
purchase journal
net book value = original cost of asset - accumulated depreciation`
work in process inventory
17. A separate one is maintained for each class of capital assets
accumulated depreciation account
capital assets
reconciling the petty cash account
land
18. This is reported after the net income on an income statement
accounts receivable ledger trial balance
express or custom
land
non-operating income
19. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
finished goods inventory
drawings account
current liabilities
Accounts Receivable Ledger
20. The two start up methods on simply accountin through the set up wizard
Accounts Receivable Ledger
cash disbursements journal
proprietor
express or custom
21. A partnership has a separate __________ and ____________ account for each partner
net income
capital and drawings account
Accounts Receivable Ledger
net value
22. Information from the purchase invoice is recorded In what journal
depreciation
capital account
accounts receivable ledger
purchase journal
23. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
income tax expenses - income tax payable
raw material inventory
Income Summary - revenue - expense - capital
capital assets
24. 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
earnings before interest and taxes
cash disbursements journal
land
trademarks
25. Must have a useful life of more than one year
capital and drawings account
long term liabilities
capital assets
outstanding deposits
26. Used to write off the cost of an intangible capital asset
amortization
Share capital accounts - retained earnings
intangible capital assets
accounts payable and accrued expenses
27. Also know as the net book value
service business
outstanding deposits
net value
straight line depreciation
28. What are the three versions of simply accounting
outstanding deposits
depreciation = net book value * %
modules
basic - pro - premium
29. Amounts owed by the company that are due within one year of the balance sheet date
Accounts Receivable Ledger
current liabilities
earnings before interest and taxes
outstanding deposits
30. Owner of a business owned by a single individual
capital and drawings account
accounts receivable
proprietor
Accounts Payable Ledger
31. When you proceed to reconcile your bank account you will use these two things
income tax expenses - income tax payable
drawings - capital - Income Summary - capital
Shareholders equity
cash receipts and cash disbursements journals
32. What account is on the cash receipts and sales journals
accounts receivable
Accounts Receivable Ledger
management
basic - pro - premium
33. Includes all debt that is due in more than one year
long term liabilities
declining balance method
corporation
service company
34. Account used to record the net income that is retained in the business at the end of the year
residual value
retained earnings account
proprietor
Accounts Payable Ledger
35. When a merchandising business prepares its income statement it includes a section called.....
Cost of Goods Sold
capital assets
non-operating income
licenses
36. Shareholders equity contains two different types of accounts.... What are they
capital assets
accounts receivable ledger trial balance
outstanding checks
Share capital accounts - retained earnings
37. A business owned by one or more individuals who are known as shareholders
corporation
merchandising business
non-operating income
depreciation
38. Listed on the balance sheet are assets that can be turned into cash within one year
current assets
accounts payable ledger
cash receipts and cash disbursements journals
land
39. You only have to enter business data once
capital assets
service business
integrated
outstanding checks
40. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
residual value
patents
accounts receivable ledger trial balance
drawings account
41. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
trademarks
daily
Accounts Receivable Ledger
corporation
42. This business does not have a purchase account and no inventory is recorded on the balance sheet
service business
residual value
trial balance
capital assets
43. Documents issued by companies as evidence of transactions made
invoices
land
service business
cash receipts journal
44. Prepared by corporations - similar to a statement of owners equity
statement of retained earnings
declining balance method
net book value = original cost of asset - accumulated depreciation`
general ledger trial balance
45. Includes the costs of all goods that are complete and ready for sale
cash receipts journal
finished goods inventory
service company
partnership
46. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
trial balance
finished goods inventory
petty cash record
Sales
47. 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
service business
Income Summary - revenue - expense - capital
integrated
capital assets
48. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
petty cash record
net income
current assets
straight line depreciation
49. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
(cost of capital asset - residual value) / (expected useful life of capital asset)
retained earnings account
integrated
income after taxes
50. Shows how much income has been earned b the business during the time period
cash receipts journal
income statement
accounts receivable ledger trial balance
capital and drawings account