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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. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
net value
retained earnings account
net book value = original cost of asset - accumulated depreciation`
depreciation
2. Must have a useful life of more than one year
capital assets
petty cash account
income after taxes
current assets
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.
work in process inventory
Accounts Receivable Ledger
income before taxes
service business
4. Account used to record the net income that is retained in the business at the end of the year
retained earnings account
depreciation expense account
land
capital assets
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
express or custom
bank reconciliation statement
trial balance
earnings before interest and taxes
6. First part of the income statement
service company
management
Sales
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
trademarks
(cost of capital asset - residual value) / (expected useful life of capital asset)
corporation
net income
8. As a rule these should always be recorded on the balance sheet at cost
net value
capital assets
bank reconciliation statement
express or custom
9. All daily transactions are entered through these
net book value
purchase invoice
modules
proprietor
10. Assets that have no physical form - but have value and are an integral part of the cost of doing business
non-operating income
common share accounts - preferred share accounts
invoices
intangible capital assets
11. Lists all vendors to whom your company has purchases
net book value
Accounts Payable Ledger
statement of retained earnings
daily
12. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
residual value
raw material inventory
trademarks
daily
13. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
retained earnings account
partnership
express or custom
drawings account
14. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
current liabilities
capital assets
net book value
declining balance method
15. Represents the assets on hand - the liabilities owed and the owners equity
gross margin
balance sheet
long term liabilities
Share capital accounts - retained earnings
16. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
accounts payable ledger
net book value = original cost of asset - accumulated depreciation`
Cost of Goods Sold
patents
17. Companies that transform raw materials into finished goods for sale
manufacturing organizations
Income Summary - revenue - expense - capital
income tax expenses - income tax payable
statement of retained earnings
18. Prepared by sole proprietors and partnerships
gross margin
business number
statement of owners equity
service business
19. Formula to calculate the depreciation for the year
depreciation
depreciation = net book value * %
capital assets
land
20. What is used to reference a company's Canadian GST and HST
retained earnings account
business number
sole proprietorship
trial balance
21. Deposits that have not yet been deposited in the bank account
intangible capital assets
Income Summary - revenue - expense - capital
cash receipts journal
outstanding deposits
22. What is the formula for calculating straight-line depreciation
trademarks
amortization
partnership agreement
(cost of capital asset - residual value) / (expected useful life of capital asset)
23. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
amortization
declining balance method
depreciation = net book value * %
accounts payable ledger
24. A business that is owned by a single individual
trademarks
sole proprietorship
bookkeeping
capital assets
25. A record of a purchase made by a company - showing the terms and conditions for payment
declining balance method
purchase invoice
trial balance
sales journal
26. Used to write off the cost of an intangible capital asset
Shareholders equity
non-operating income
amortization
balance sheet
27. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
petty cash record
land
net value
land
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
current liabilities
merchandising business
petty cash account
goodwill
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
Share capital accounts - retained earnings
accounts payable and accrued expenses
express or custom
depreciation = net book value * %
30. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
capital assets
gross margin
depreciation expense account
cash disbursements journal
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
accounts receivable ledger
income statement
trial balance
Share capital accounts - retained earnings
32. A separate one is maintained for each class of capital assets
bank reconciliation statement
net book value = original cost of asset - accumulated depreciation`
sales journal
accumulated depreciation account
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
patents
intangible capital assets
Income Summary - revenue - expense - capital
depreciation expense account
34. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
goodwill
(cost of capital asset - residual value) / (expected useful life of capital asset)
income tax expenses - income tax payable
income after taxes
35. The two start up methods on simply accountin through the set up wizard
amortization
board of directors
capital assets
express or custom
36. Shareholders equity contains two different types of accounts.... What are they
corporation
drawings - capital - Income Summary - capital
Share capital accounts - retained earnings
drawings account
37. What account is on the purchases and cash disbursements journals
proprietor
licenses
Accounts payable
accumulated depreciation account
38. Also know as the net book value
depreciation
Accounts Payable Ledger
drawings - capital - Income Summary - capital
net value
39. The process of comparing the cash plus receipts to the original balance int he account
amortization
outstanding checks
reconciling the petty cash account
cash disbursements journal
40. Lists all customers and their outstanding balances for non cash or on account sales made
accounts receivable ledger
common share accounts - preferred share accounts
retained earnings account
Income Summary - revenue - expense - capital
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
accounts receivable
balance sheet
straight line depreciation
accounts receivable ledger trial balance
42. Account is reduced by the value of dividends paid to the shareholder
net income
retained earnings account
accounts receivable ledger
capital assets
43. A number of owners join together and create one business in which they each own an agreed upon percentage
partnership
net book value = original cost of asset - accumulated depreciation`
daily
invoices
44. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
trial balance
net income
non-operating income
income statement
45. All the checks that have not appeared on the bank statement
current liabilities
service company
outstanding checks
accounts receivable ledger
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
Sales
corporation
bookkeeping
service business
47. Includes all debt that is due in more than one year
capital and drawings account
long term liabilities
Accounts Receivable Ledger
Accounts Payable Ledger
48. A legal document giving official permission to do something
net value
service business
licenses
drawings - capital - Income Summary - capital
49. A business that offers services to the public
gross margin
work in process inventory
outstanding deposits
service company
50. When you proceed to reconcile your bank account you will use these two things
partnership
cash receipts and cash disbursements journals
cash receipts journal
capital account