Test your basic knowledge |

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






2. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________






3. Formula to calculate the net book value






4. 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






5. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset






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






7. When a merchandising business prepares its income statement it includes a section called.....






8. 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






9. 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.






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






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






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






13. Calculated by subtracting sales from the cogs






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






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






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






17. Has an indefinate life span and is not considered to reduce in value over time






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






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






21. All daily transactions are entered through these






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






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






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






25. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale






26. A business that offers services to the public






27. 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






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






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






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






31. 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






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






33. 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






34. Information from the purchase invoice is recorded In what journal






35. 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






36. What are the three versions of simply accounting






37. 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






38. How often are the accounts payable entries entered into the accounts payable ledger






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






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






41. The process of recording the transactions and financial activities of a business






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






43. Two types of share capital accounts






44. A business owned by one or more individuals who are known as shareholders






45. You only have to enter business data once






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






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






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






49. 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






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