SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. Prepared by corporations - similar to a statement of owners equity
retained earnings account
retained earnings account
sales journal
statement of retained earnings
2. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
purchase journal
net income
Accounts payable
cash receipts journal
3. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
straight line depreciation
income before taxes
manufacturing organizations
drawings account
4. How often are the accounts payable entries entered into the accounts payable ledger
daily
capital assets
cash receipts and cash disbursements journals
current assets
5. All the checks that have not appeared on the bank statement
express or custom
long term liabilities
outstanding checks
Shareholders equity
6. Represents the expected value of the asset at the end of its useful life to the business
net book value = original cost of asset - accumulated depreciation`
residual value
statement of owners equity
Accounts Receivable Ledger
7. What is used to reference a company's Canadian GST and HST
statement of retained earnings
modules
business number
accounts receivable
8. A business that offers services to the public
sales journal
integration
service company
income statement
9. Amounts owed by the company that are due within one year of the balance sheet date
accounts receivable ledger
current liabilities
basic - pro - premium
land
10. Prepared by sole proprietors and partnerships
licenses
statement of owners equity
invoices
outstanding checks
11. The two start up methods on simply accountin through the set up wizard
capital and drawings account
service business
express or custom
statement of retained earnings
12. One is maintained for all classes of capital assets
bookkeeping
long term liabilities
current liabilities
depreciation expense account
13. In a corporations books - the equity section is referred to as _________ ________
Shareholders equity
depreciation expense account
Accounts payable
Income Summary - revenue - expense - capital
14. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
work in process inventory
income tax expenses - income tax payable
partnership
residual value
15. Signed by all partners in a partneship to establish rules about how the business is going to be run
partnership agreement
capital assets
corporation
common share accounts - preferred share accounts
16. 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
depreciation
land
capital account
net book value = original cost of asset - accumulated depreciation`
17. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
amortization
sales journal
patents
capital assets
18. Account used to record the net income that is retained in the business at the end of the year
retained earnings account
business number
general ledger trial balance
invoices
19. This is reported after the net income on an income statement
capital and drawings account
trademarks
Cost of Goods Sold
non-operating income
20. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
capital assets
corporation
depreciation
Sales
21. First part of the income statement
income before taxes
proprietor
Sales
board of directors
22. What is the formula for calculating straight-line depreciation
accounts receivable
(cost of capital asset - residual value) / (expected useful life of capital asset)
retained earnings account
purchase invoice
23. What account is on the cash receipts and sales journals
capital assets
non-operating income
accounts receivable
Cost of Goods Sold
24. A record of a purchase made by a company - showing the terms and conditions for payment
Accounts payable
manufacturing organizations
bookkeeping
purchase invoice
25. Lists all customers and their outstanding balances for non cash or on account sales made
accounts receivable ledger
Income Summary - revenue - expense - capital
declining balance method
partnership
26. Calculated from adding the non operating expenses to the net income
long term liabilities
basic - pro - premium
Accounts Receivable Ledger
income before taxes
27. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
licenses
Cost of Goods Sold
depreciation = net book value * %
Share capital accounts - retained earnings
28. 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
current liabilities
accounts receivable ledger trial balance
corporation
net book value = original cost of asset - accumulated depreciation`
29. The process of recording the transactions and financial activities of a business
patents
land
sales journal
bookkeeping
30. A number of owners join together and create one business in which they each own an agreed upon percentage
statement of retained earnings
bank reconciliation statement
daily
partnership
31. 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
bank reconciliation statement
reconciling the petty cash account
patents
service business
32. A partnership has a separate __________ and ____________ account for each partner
service business
Cost of Goods Sold
capital and drawings account
intangible capital assets
33. Oversees the management of the company/corporation
board of directors
depreciation
Income Summary - revenue - expense - capital
income tax expenses - income tax payable
34. Also know as the net book value
income statement
petty cash record
trial balance
net value
35. Consist of physical assets and non-physical or intangible properties
accounts payable ledger
capital assets
bank reconciliation statement
net income
36. 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
sales journal
land
accounts receivable ledger
37. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
proprietor
Shareholders equity
drawings - capital - Income Summary - capital
raw material inventory
38. All daily transactions are entered through these
merchandising business
modules
capital and drawings account
intangible capital assets
39. 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
capital assets
Cost of Goods Sold
cash receipts journal
current liabilities
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
corporation
drawings - capital - Income Summary - capital
accounts receivable
patents
41. Two types of share capital accounts
capital assets
amortization
common share accounts - preferred share accounts
partnership agreement
42. Documents issued by companies as evidence of transactions made
(cost of capital asset - residual value) / (expected useful life of capital asset)
basic - pro - premium
net book value = original cost of asset - accumulated depreciation`
invoices
43. When a merchandising business prepares its income statement it includes a section called.....
trademarks
statement of retained earnings
Cost of Goods Sold
straight line depreciation
44. You only have to enter business data once
accounts receivable ledger
capital assets
Accounts Payable Ledger
integrated
45. As a rule these should always be recorded on the balance sheet at cost
capital assets
Cost of Goods Sold
gross margin
Accounts Receivable Ledger
46. Are not intended for resale
basic - pro - premium
land
capital assets
manufacturing organizations
47. Formula to calculate the depreciation for the year
statement of owners equity
depreciation = net book value * %
residual value
bookkeeping
48. A separate one is maintained for each class of capital assets
amortization
accumulated depreciation account
intangible capital assets
net income
49. Account is reduced by the value of dividends paid to the shareholder
work in process inventory
retained earnings account
accounts receivable ledger trial balance
residual value
50. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
board of directors
net book value
capital assets
petty cash record