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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 the net income that is retained in the business at the end of the year






2. Oversees the management of the company/corporation






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






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






5. 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






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






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






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






9. 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






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






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






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






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






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






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






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






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






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






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






21. One is maintained for all classes of capital assets






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






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






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






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






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






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






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






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






30. Lists all vendors to whom your company has purchases






31. Calculated by subtracting sales from the cogs






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






33. 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






34. A business that is owned by a single individual






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






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






37. Are not intended for resale






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






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






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






41. Prepared by sole proprietors and partnerships






42. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset






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






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






45. Account maintained for small purchases






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






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






48. Owner of a business owned by a single individual






49. 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






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