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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. 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






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






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






4. You only have to enter business data once






5. Calculated by subtracting sales from the cogs






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






7. Oversees the management of the company/corporation






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






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






10. First part of the income statement






11. In a corporations books - the equity section is referred to as _________ ________






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






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






14. Formula to calculate the net book value






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






16. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset






17. Formula to calculate the depreciation for the year






18. 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






19. Two types of share capital accounts






20. This business purchases products from its vendors for resale to its customers






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






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






23. 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






24. 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






25. A business that offers services to the public






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






27. Also know as the net book value






28. A legal document giving official permission to do something






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






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






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






32. 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






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






34. Includes the costs of all goods that are complete and ready for sale






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






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






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






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






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






40. 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






41. Lists all vendors to whom your company has purchases






42. 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






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






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






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






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






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






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






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






50. Represents the assets on hand - the liabilities owed and the owners equity