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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. Also know as the net book value






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






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






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






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






6. A business that is owned by a single individual






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






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






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






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






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






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






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






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






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






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






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






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






19. 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






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






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






22. 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






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






24. One is maintained for all classes of capital assets






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






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






27. Documents issued by companies as evidence of transactions made






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






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






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






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






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. Oversees the management of the company/corporation






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






36. Lists all vendors to whom your company has purchases






37. What account is on the purchases and cash disbursements journals






38. Owner of a business owned by a single individual






39. Account maintained for small purchases






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






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






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






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






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






45. 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






46. Two types of share capital accounts






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






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






49. All daily transactions are entered through these






50. A legal document giving official permission to do something