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






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






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






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






5. 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






6. Account maintained for small purchases






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






9. All daily transactions are entered through these






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






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






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






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






14. Are not intended for resale






15. A partnership has a separate __________ and ____________ account for each partner






16. Lists all vendors to whom your company has purchases






17. 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






18. 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






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






20. One is maintained for all classes of capital assets






21. 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






22. Calculated by subtracting sales from the cogs






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






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






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






26. 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






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






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






29. Documents issued by companies as evidence of transactions made






30. Formula to calculate the depreciation for the year






31. Amounts owed by the company that are due within one year of the balance sheet date






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






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






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






35. 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






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






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






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






39. What is used to reference a company's Canadian GST and HST






40. Consist of physical assets and non-physical or intangible properties






41. Two types of share capital accounts






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






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






44. 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






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






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. What is the formula for calculating straight-line depreciation






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






49. Also know as the net book value






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