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






2. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale






3. All daily transactions are entered through these






4. 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






5. 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






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






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






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






9. Two types of share capital accounts






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






11. Formula to calculate the net book value






12. A legal document giving official permission to do something






13. 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






14. 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.






15. One is maintained for all classes of capital assets






16. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc






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






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






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






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






21. Has an indefinate life span and is not considered to reduce in value over time






22. A business owned by one or more individuals who are known as shareholders






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






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






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






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






27. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes






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






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






30. A partnership has a separate __________ and ____________ account for each partner






31. Owner of a business owned by a single individual






32. 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






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






34. 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






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






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






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






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






39. Oversees the management of the company/corporation






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






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






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






43. A word - symbol - design - or combination of these used to represent products or services provided by a company. It helps to distinguish products or services of one company from another






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






45. Lists all vendors to whom your company has purchases






46. Documents issued by companies as evidence of transactions made






47. Represents the expected value of the asset at the end of its useful life to the business






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






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






50. 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







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