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Test your basic knowledge |
Bookkeeping Advanced Vocab
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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. Shows how much income has been earned b the business during the time period
sales journal
income statement
invoices
accounts receivable
2. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
Cost of Goods Sold
integrated
accounts receivable ledger
work in process inventory
3. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
current assets
net book value
capital assets
integrated
4. Formula to calculate the net book value
net book value = original cost of asset - accumulated depreciation`
capital and drawings account
retained earnings account
Accounts Receivable Ledger
5. A partnership has a separate __________ and ____________ account for each partner
capital and drawings account
Accounts Payable Ledger
straight line depreciation
service business
6. Documents issued by companies as evidence of transactions made
service business
drawings account
retained earnings account
invoices
7. Prepared by corporations - similar to a statement of owners equity
(cost of capital asset - residual value) / (expected useful life of capital asset)
business number
income statement
statement of retained earnings
8. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
reconciling the petty cash account
declining balance method
basic - pro - premium
capital assets
9. 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
merchandising business
cash disbursements journal
accounts payable and accrued expenses
cash receipts and cash disbursements journals
10. Net income is also known as this on an income statement
depreciation
earnings before interest and taxes
amortization
current liabilities
11. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
cash disbursements journal
Accounts Receivable Ledger
straight line depreciation
outstanding checks
12. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
capital assets
capital assets
net book value
purchase journal
13. Information from the sales invoice is recorded In what journal
sales journal
residual value
income statement
partnership
14. Amounts owed by the company that are due within one year of the balance sheet date
income after taxes
gross margin
Shareholders equity
current liabilities
15. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
petty cash account
patents
depreciation = net book value * %
income tax expenses - income tax payable
16. What is used to reference a company's Canadian GST and HST
purchase journal
business number
Cost of Goods Sold
sales journal
17. The two start up methods on simply accountin through the set up wizard
service business
land
purchase journal
express or custom
18. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
finished goods inventory
capital and drawings account
straight line depreciation
net income
19. A business that offers services to the public
net income
depreciation
service company
Accounts Payable Ledger
20. What account is on the cash receipts and sales journals
gross margin
accounts receivable
balance sheet
daily
21. The ledgers are linked to the general ledger by this process
Accounts payable
integration
sole proprietorship
sales journal
22. Information from the purchase invoice is recorded In what journal
raw material inventory
manufacturing organizations
purchase journal
sales journal
23. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
sole proprietorship
drawings account
residual value
Share capital accounts - retained earnings
24. Account is reduced by the value of dividends paid to the shareholder
retained earnings account
income before taxes
bank reconciliation statement
petty cash record
25. 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
declining balance method
bank reconciliation statement
Cost of Goods Sold
net book value = original cost of asset - accumulated depreciation`
26. What are the three versions of simply accounting
drawings - capital - Income Summary - capital
finished goods inventory
partnership
basic - pro - premium
27. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
sales journal
statement of owners equity
bank reconciliation statement
capital account
28. Signed by all partners in a partneship to establish rules about how the business is going to be run
partnership agreement
sales journal
Cost of Goods Sold
Shareholders equity
29. Also know as the net book value
sales journal
declining balance method
accounts receivable ledger trial balance
net value
30. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
modules
work in process inventory
capital account
accounts receivable ledger
31. Oversees the management of the company/corporation
current liabilities
board of directors
purchase journal
Income Summary - revenue - expense - capital
32. Has an indefinate life span and is not considered to reduce in value over time
land
statement of owners equity
accumulated depreciation account
gross margin
33. This business purchases products from its vendors for resale to its customers
merchandising business
capital assets
purchase journal
accounts receivable ledger trial balance
34. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
land
patents
Accounts payable
Share capital accounts - retained earnings
35. When a merchandising business prepares its income statement it includes a section called.....
Cost of Goods Sold
land
manufacturing organizations
depreciation
36. Prepared by sole proprietors and partnerships
reconciling the petty cash account
statement of owners equity
depreciation
declining balance method
37. Deposits that have not yet been deposited in the bank account
depreciation
outstanding deposits
express or custom
capital assets
38. Account used to record the net income that is retained in the business at the end of the year
retained earnings account
drawings account
Share capital accounts - retained earnings
work in process inventory
39. A legal document giving official permission to do something
earnings before interest and taxes
express or custom
licenses
Sales
40. Represents the assets on hand - the liabilities owed and the owners equity
balance sheet
capital assets
petty cash record
retained earnings account
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
non-operating income
accounts receivable ledger
land
accounts receivable
42. Represents the expected value of the asset at the end of its useful life to the business
earnings before interest and taxes
residual value
net value
Shareholders equity
43. Are not intended for resale
Accounts Receivable Ledger
general ledger trial balance
capital assets
cash receipts and cash disbursements journals
44. 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
cash receipts journal
amortization
sales journal
(cost of capital asset - residual value) / (expected useful life of capital asset)
45. 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
trial balance
accounts receivable ledger trial balance
capital assets
46. 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
earnings before interest and taxes
drawings - capital - Income Summary - capital
invoices
service business
47. In a corporations books - the equity section is referred to as _________ ________
Income Summary - revenue - expense - capital
capital and drawings account
Shareholders equity
cash disbursements journal
48. 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
accounts receivable ledger
service business
long term liabilities
invoices
49. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
purchase invoice
daily
straight line depreciation
income tax expenses - income tax payable
50. Used to write off the cost of an intangible capital asset
net book value = original cost of asset - accumulated depreciation`
gross margin
amortization
proprietor