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. A business owned by one or more individuals who are known as shareholders
corporation
cash receipts and cash disbursements journals
service business
integration
2. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
Accounts Receivable Ledger
land
capital assets
capital assets
3. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
basic - pro - premium
straight line depreciation
petty cash record
Cost of Goods Sold
4. 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
capital assets
gross margin
accounts payable ledger
capital assets
5. Owner of a business owned by a single individual
raw material inventory
proprietor
Accounts payable
express or custom
6. Prepared by corporations - similar to a statement of owners equity
statement of retained earnings
current liabilities
trademarks
income tax expenses - income tax payable
7. A business that offers services to the public
capital assets
modules
service company
capital assets
8. 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 receivable ledger
purchase journal
income tax expenses - income tax payable
accounts receivable
9. Includes the costs of all goods that are complete and ready for sale
accounts receivable ledger trial balance
intangible capital assets
finished goods inventory
Accounts Payable Ledger
10. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
Cost of Goods Sold
general ledger trial balance
income tax expenses - income tax payable
raw material inventory
11. Formula to calculate the depreciation for the year
accounts receivable
gross margin
outstanding checks
depreciation = net book value * %
12. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
retained earnings account
outstanding deposits
net value
drawings account
13. This business purchases products from its vendors for resale to its customers
trademarks
capital assets
merchandising business
net book value = original cost of asset - accumulated depreciation`
14. Calculated by subtracting sales from the cogs
gross margin
purchase journal
accounts receivable ledger
cash disbursements journal
15. Companies that transform raw materials into finished goods for sale
drawings account
manufacturing organizations
land
accounts receivable ledger
16. 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
drawings account
Accounts Receivable Ledger
bank reconciliation statement
cash receipts and cash disbursements journals
17. What account is on the purchases and cash disbursements journals
accounts receivable ledger
Accounts payable
cash receipts journal
common share accounts - preferred share accounts
18. Listed on the balance sheet are assets that can be turned into cash within one year
current assets
integration
service business
Sales
19. 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
corporation
income statement
outstanding checks
service business
20. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
Accounts Payable Ledger
capital assets
long term liabilities
Sales
21. Who makes the decision on the amount to keep in the petty cash account
licenses
management
retained earnings account
general ledger trial balance
22. The two start up methods on simply accountin through the set up wizard
capital account
manufacturing organizations
express or custom
bank reconciliation statement
23. All the checks that have not appeared on the bank statement
retained earnings account
intangible capital assets
outstanding checks
work in process inventory
24. Calculated from adding the non operating expenses to the net income
partnership agreement
income before taxes
Income Summary - revenue - expense - capital
income after taxes
25. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
capital assets
invoices
accumulated depreciation account
statement of retained earnings
26. In a corporations books - the equity section is referred to as _________ ________
Shareholders equity
bank reconciliation statement
Accounts Receivable Ledger
reconciling the petty cash account
27. 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
sales journal
Share capital accounts - retained earnings
accounts receivable ledger
goodwill
28. Account is reduced by the value of dividends paid to the shareholder
purchase journal
retained earnings account
drawings - capital - Income Summary - capital
modules
29. Information from the purchase invoice is recorded In what journal
basic - pro - premium
Accounts Receivable Ledger
partnership
purchase journal
30. Consist of physical assets and non-physical or intangible properties
drawings - capital - Income Summary - capital
general ledger trial balance
capital assets
proprietor
31. When a merchandising business prepares its income statement it includes a section called.....
general ledger trial balance
accounts payable and accrued expenses
Cost of Goods Sold
Share capital accounts - retained earnings
32. Account used to record the net income that is retained in the business at the end of the year
outstanding checks
general ledger trial balance
trademarks
retained earnings account
33. The process of comparing the cash plus receipts to the original balance int he account
basic - pro - premium
reconciling the petty cash account
capital assets
net book value = original cost of asset - accumulated depreciation`
34. 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
trial balance
accounts payable and accrued expenses
net book value = original cost of asset - accumulated depreciation`
net income
35. As a rule these should always be recorded on the balance sheet at cost
capital assets
trademarks
depreciation expense account
basic - pro - premium
36. One is maintained for all classes of capital assets
income tax expenses - income tax payable
cash receipts and cash disbursements journals
depreciation expense account
(cost of capital asset - residual value) / (expected useful life of capital asset)
37. 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
accounts receivable ledger
accounts receivable ledger trial balance
daily
Sales
38. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
Sales
Accounts Receivable Ledger
income before taxes
purchase journal
39. Oversees the management of the company/corporation
Shareholders equity
net income
bank reconciliation statement
board of directors
40. Information from the sales invoice is recorded In what journal
board of directors
(cost of capital asset - residual value) / (expected useful life of capital asset)
service business
sales journal
41. Represents the expected value of the asset at the end of its useful life to the business
residual value
outstanding deposits
non-operating income
Accounts Receivable Ledger
42. A legal document giving official permission to do something
general ledger trial balance
licenses
trial balance
net value
43. 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 statement
gross margin
basic - pro - premium
income tax expenses - income tax payable
44. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
accounts receivable
petty cash account
express or custom
net income
45. All daily transactions are entered through these
(cost of capital asset - residual value) / (expected useful life of capital asset)
Accounts payable
modules
bank reconciliation statement
46. What is the formula for calculating straight-line depreciation
capital assets
long term liabilities
finished goods inventory
(cost of capital asset - residual value) / (expected useful life of capital asset)
47. What account is on the cash receipts and sales journals
board of directors
Share capital accounts - retained earnings
depreciation = net book value * %
accounts receivable
48. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
modules
income after taxes
capital account
drawings account
49. 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
cash receipts journal
depreciation
service company
drawings - capital - Income Summary - capital
50. Used to write off the cost of an intangible capital asset
proprietor
partnership
depreciation = net book value * %
amortization