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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. Also know as the net book value






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






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






4. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________






5. 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.






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






7. 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






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






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






10. A record of a purchase made by a company - showing the terms and conditions for payment






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






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






13. Consist of physical assets and non-physical or intangible properties






14. 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






15. Calculated by subtracting sales from the cogs






16. First part of the income statement






17. The ______ ______ account is used int he closing process for transferring the balances of the _______ and _______ account to the partners ________ accounts at the end of the period






18. 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






19. Formula to calculate the net book value






20. A business that is owned by a single individual






21. Lists all vendors to whom your company has purchases






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






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






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






25. 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






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






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






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






29. 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






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






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






32. A legal document giving official permission to do something






33. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax






34. All daily transactions are entered through these






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






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






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






38. Account used to record the net income that is retained in the business at the end of the year






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






40. You only have to enter business data once






41. Must be held for use in the production of goods and/or services






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






43. A list of all the disbursements made from your petty cash in the box with the receipts and the cash






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






45. Account maintained for small purchases






46. Formula to calculate the depreciation for the year






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






48. Owner of a business owned by a single individual






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






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