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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. Deposits that have not yet been deposited in the bank account






2. 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






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






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






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






6. 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






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






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






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






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






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






12. Net income is also known as this on an income statement






13. Account maintained for small purchases






14. A legal document giving official permission to do something






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






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






17. Formula to calculate the depreciation for the year






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 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






20. 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






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






22. What is used to reference a company's Canadian GST and HST






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






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






25. 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.






26. Oversees the management of the company/corporation






27. 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






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






29. Owner of a business owned by a single individual






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






31. Lists all vendors to whom your company has purchases






32. All daily transactions are entered through these






33. A business that offers services to the public






34. One is maintained for all classes of capital assets






35. You only have to enter business data once






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






37. Each subsidiary ledger has this prepared to ensure that the credit/debit columns balance and are then compared with the control account in the general ledger






38. 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






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






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






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






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






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






44. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention






45. 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






46. Two types of share capital accounts






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






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






49. The process of recording the transactions and financial activities of a business






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