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






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






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






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






5. 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






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






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






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






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






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






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






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






13. At the end of the year - the bookkeeper will close each partner's __________ account to his/her _______ account and allocate each partner's share of the net income or loss in the business from the _________ ________ Account to his/her ________ accoun






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






15. Owner of a business owned by a single individual






16. Oversees the management of the company/corporation






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






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






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






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






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






22. A business that is owned by a single individual






23. In a corporations books - the equity section is referred to as _________ ________






24. 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






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. All daily transactions are entered through these






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






28. 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






29. A legal document giving official permission to do something






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






31. Prepared by sole proprietors and partnerships






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






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






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






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






36. Formula to calculate the net book value






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






38. 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






39. Documents issued by companies as evidence of transactions made






40. Lists all vendors to whom your company has purchases






41. Formula to calculate the depreciation for the year






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






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






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






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






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






47. 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.






48. Are not intended for resale






49. 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






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