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






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






3. Oversees the management of the company/corporation






4. Documents issued by companies as evidence of transactions made






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






6. 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






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






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






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






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






11. First part of the income statement






12. Owner of a business owned by a single individual






13. 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






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






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






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






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






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






19. Formula to calculate the depreciation for the year






20. A legal document giving official permission to do something






21. A business that offers services to the public






22. You only have to enter business data once






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






24. 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






25. Account maintained for small purchases






26. Each subsidiary ledger has this prepared to ensure that the credit/debit columns balance and are then compared with the control account in the general ledger






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






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






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






30. 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






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






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






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






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






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






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






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






38. 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






39. What are the three versions of simply accounting






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






41. Shows how much income has been earned b the business during the time period






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






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






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






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






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






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






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






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






50. 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