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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






3. Oversees the management of the company/corporation






4. Two types of share capital accounts






5. First part of the income statement






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






7. Owner of a business owned by a single individual






8. 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






9. Calculated from adding the non operating expenses to the net income






10. Amounts owed by the company that are due within one year of the balance sheet date






11. 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






12. One is maintained for all classes of capital assets






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






14. 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






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






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






17. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset






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






19. 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






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






21. 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






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






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






24. 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






25. Documents issued by companies as evidence of transactions made






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






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






28. 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






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






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






31. Formula to calculate the depreciation for the year






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






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






34. Lists all vendors to whom your company has purchases






35. Information from the purchase invoice is recorded In what journal






36. Prepared by corporations - similar to a statement of owners equity






37. 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






38. 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






39. A business that offers services to the public






40. A legal document giving official permission to do something






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






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






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






44. What is used to reference a company's Canadian GST and HST






45. 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






46. 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.






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






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






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






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