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






2. 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






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






4. Are not intended for resale






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






6. 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






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






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






9. Used to write off the cost of an intangible capital asset






10. Account maintained for small purchases






11. 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






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






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






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






15. What account is on the purchases and cash disbursements journals






16. 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






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






18. Formula to calculate the depreciation for the year






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






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






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






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






23. A business that offers services to the public






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






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






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






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






28. Oversees the management of the company/corporation






29. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin






30. You only have to enter business data once






31. Calculated from adding the non operating expenses to the net income






32. 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






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






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






35. Owner of a business owned by a single individual






36. Also know as the net book value






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






38. Information from the purchase invoice is recorded In what journal






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






40. Documents issued by companies as evidence of transactions made






41. 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






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






43. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset






44. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement






45. What are the three versions of simply accounting






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






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






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






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