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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 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






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






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






5. 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






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






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






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






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






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






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






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






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






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






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






17. 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






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






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






20. Shareholders equity contains two different types of accounts.... What are they






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






22. One is maintained for all classes of capital assets






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






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






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






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






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






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






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






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






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






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






34. Also know as the net book value






35. Lists all vendors to whom your company has purchases






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






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






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






39. Owner of a business owned by a single individual






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






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






42. 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






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






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






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






46. 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






47. Formula to calculate the depreciation for the year






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






49. 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






50. 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.