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Test your basic knowledge |
Bookkeeping Advanced Vocab
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Study First
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. Prepared by sole proprietors and partnerships
capital assets
land
statement of owners equity
work in process inventory
2. Has an indefinate life span and is not considered to reduce in value over time
retained earnings account
Accounts payable
Cost of Goods Sold
land
3. How often are the accounts payable entries entered into the accounts payable ledger
capital and drawings account
daily
finished goods inventory
(cost of capital asset - residual value) / (expected useful life of capital asset)
4. Represents the expected value of the asset at the end of its useful life to the business
residual value
Accounts Receivable Ledger
manufacturing organizations
capital assets
5. Assets that have no physical form - but have value and are an integral part of the cost of doing business
board of directors
intangible capital assets
trademarks
income tax expenses - income tax payable
6. 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
accounts receivable ledger trial balance
Income Summary - revenue - expense - capital
drawings - capital - Income Summary - capital
trademarks
7. Account used to record the net income that is retained in the business at the end of the year
work in process inventory
board of directors
Accounts Payable Ledger
retained earnings account
8. 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
manufacturing organizations
cash receipts journal
current liabilities
declining balance method
9. What is the formula for calculating straight-line depreciation
finished goods inventory
income statement
(cost of capital asset - residual value) / (expected useful life of capital asset)
purchase journal
10. Companies that transform raw materials into finished goods for sale
land
manufacturing organizations
current assets
depreciation = net book value * %
11. When recording the cost of this - all related costs - such as legal - real estate - commissions and other expenses form a part of the original cost
Accounts Receivable Ledger
intangible capital assets
accounts receivable ledger trial balance
land
12. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
net book value = original cost of asset - accumulated depreciation`
cash receipts and cash disbursements journals
licenses
straight line depreciation
13. A business that is owned by a single individual
sole proprietorship
capital assets
raw material inventory
Cost of Goods Sold
14. Oversees the management of the company/corporation
non-operating income
cash receipts and cash disbursements journals
cash disbursements journal
board of directors
15. 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
trial balance
service business
trademarks
Income Summary - revenue - expense - capital
16. 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
modules
capital assets
accounts payable ledger
amortization
17. Calculated by subtracting sales from the cogs
Accounts Payable Ledger
accounts payable and accrued expenses
gross margin
non-operating income
18. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
drawings account
accounts receivable
capital assets
residual value
19. Net income is also known as this on an income statement
earnings before interest and taxes
land
purchase journal
accumulated depreciation account
20. Listed on the balance sheet are assets that can be turned into cash within one year
(cost of capital asset - residual value) / (expected useful life of capital asset)
current assets
board of directors
statement of owners equity
21. A number of owners join together and create one business in which they each own an agreed upon percentage
capital assets
retained earnings account
partnership
finished goods inventory
22. A separate one is maintained for each class of capital assets
land
corporation
cash disbursements journal
accumulated depreciation account
23. Represents the assets on hand - the liabilities owed and the owners equity
balance sheet
express or custom
purchase invoice
accounts payable ledger
24. A partnership has a separate __________ and ____________ account for each partner
capital and drawings account
cash receipts journal
accounts receivable ledger trial balance
Share capital accounts - retained earnings
25. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
depreciation
residual value
capital assets
sales journal
26. 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
trademarks
goodwill
outstanding deposits
express or custom
27. Signed by all partners in a partneship to establish rules about how the business is going to be run
merchandising business
capital account
partnership agreement
capital assets
28. 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
integration
Accounts Payable Ledger
service business
(cost of capital asset - residual value) / (expected useful life of capital asset)
29. Information from the sales invoice is recorded In what journal
income after taxes
statement of owners equity
partnership agreement
sales journal
30. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
trial balance
finished goods inventory
Income Summary - revenue - expense - capital
income tax expenses - income tax payable
31. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
gross margin
retained earnings account
Shareholders equity
net book value
32. Lists all vendors to whom your company has purchases
statement of retained earnings
net book value = original cost of asset - accumulated depreciation`
Accounts Payable Ledger
cash receipts and cash disbursements journals
33. What account is on the purchases and cash disbursements journals
accumulated depreciation account
land
Accounts payable
Accounts Payable Ledger
34. What are the three versions of simply accounting
Accounts Receivable Ledger
basic - pro - premium
petty cash account
Accounts payable
35. Formula to calculate the net book value
board of directors
income before taxes
net book value = original cost of asset - accumulated depreciation`
residual value
36. All the checks that have not appeared on the bank statement
capital account
outstanding checks
drawings account
daily
37. First part of the income statement
board of directors
manufacturing organizations
income statement
Sales
38. Also know as the net book value
cash disbursements journal
statement of retained earnings
net value
integrated
39. 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
net value
bank reconciliation statement
outstanding deposits
licenses
40. Are not intended for resale
outstanding deposits
capital assets
net book value
partnership
41. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
accumulated depreciation account
(cost of capital asset - residual value) / (expected useful life of capital asset)
Accounts Receivable Ledger
management
42. 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
daily
accounts payable and accrued expenses
trial balance
general ledger trial balance
43. As a rule these should always be recorded on the balance sheet at cost
bookkeeping
capital assets
current liabilities
basic - pro - premium
44. Must be held for use in the production of goods and/or services
modules
Sales
finished goods inventory
capital assets
45. Two types of share capital accounts
daily
partnership
common share accounts - preferred share accounts
merchandising business
46. One is maintained for all classes of capital assets
depreciation expense account
Cost of Goods Sold
bank reconciliation statement
capital assets
47. Includes the costs of all goods that are complete and ready for sale
basic - pro - premium
Accounts Receivable Ledger
finished goods inventory
cash receipts journal
48. Documents issued by companies as evidence of transactions made
current assets
service company
basic - pro - premium
invoices
49. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
accounts receivable ledger
current liabilities
purchase journal
Accounts payable
50. Used to write off the cost of an intangible capital asset
amortization
invoices
accounts receivable ledger
Accounts Receivable Ledger