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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. A number of owners join together and create one business in which they each own an agreed upon percentage






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






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






4. Formula to calculate the depreciation for the year






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






6. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers






7. 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






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






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






10. A business that offers services to the public






11. Two types of share capital accounts






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






13. A business that is owned by a single individual






14. 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






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






16. Must be held for use in the production of goods and/or services






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






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






19. What are the three versions of simply accounting






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






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






22. 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






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






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






25. What account is on the cash receipts and sales journals






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






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






28. 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






29. First part of the income statement






30. How often are the accounts payable entries entered into the accounts payable ledger






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






32. A legal document giving official permission to do something






33. A list of all the disbursements made from your petty cash in the box with the receipts and the cash






34. One is maintained for all classes of capital assets






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






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






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






38. The process of comparing the cash plus receipts to the original balance int he account






39. Account maintained for small purchases






40. Taxes are deducted from the income before taxes total on an income statement to come up with this total...






41. 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






42. Are not intended for resale






43. 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






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






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






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






47. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax






48. Calculated by subtracting sales from the cogs






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






50. 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