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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. 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.






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






5. 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






6. First part of the income statement






7. 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






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






9. All daily transactions are entered through these






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






11. Lists all vendors to whom your company has purchases






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






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






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






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






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






18. Prepared by sole proprietors and partnerships






19. Formula to calculate the depreciation for the year






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






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






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






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






24. A business that is owned by a single individual






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






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






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






28. 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






29. 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






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






31. 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






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






33. 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






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






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






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






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






38. Also know as the net book value






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






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






41. 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






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






43. A number of owners join together and create one business in which they each own an agreed upon percentage






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






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






46. 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






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






48. A legal document giving official permission to do something






49. A business that offers services to the public






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