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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. 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






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






3. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes






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






5. 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.






6. 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






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






8. You only have to enter business data once






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






10. 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






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






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






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






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






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






16. The two start up methods on simply accountin through the set up wizard






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






18. Must have a useful life of more than one year






19. 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






20. Also know as the net book value






21. Calculated by subtracting sales from the cogs






22. A business that offers services to the public






23. Lists all vendors to whom your company has purchases






24. One is maintained for all classes of capital assets






25. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement






26. Account is reduced by the value of dividends paid to the shareholder






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






28. All daily transactions are entered through these






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






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






31. Account maintained for small purchases






32. 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






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






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






35. Formula to calculate the net book value






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






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






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






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






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






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






42. 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






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






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






45. 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






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






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






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






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






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