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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. A business that offers services to the public






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






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






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






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






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






7. You only have to enter business data once






8. What is the formula for calculating straight-line depreciation






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






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






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






12. Also know as the net book value






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






14. Formula to calculate the depreciation for the year






15. Formula to calculate the net book value






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






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






18. 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






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






20. 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






21. 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.






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






23. Lists all vendors to whom your company has purchases






24. 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






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






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






27. Calculated by subtracting sales from the cogs






28. 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






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






30. 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






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






32. A business that is owned by a single individual






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






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






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






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






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






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






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






40. 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






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






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






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






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






45. Companies that transform raw materials into finished goods for sale






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






47. 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






48. 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






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






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







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