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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. You only have to enter business data once
invoices
partnership agreement
cash receipts and cash disbursements journals
integrated
2. Net income is also known as this on an income statement
residual value
earnings before interest and taxes
Accounts Payable Ledger
amortization
3. The process of comparing the cash plus receipts to the original balance int he account
integrated
residual value
reconciling the petty cash account
capital assets
4. Formula to calculate the net book value
net book value = original cost of asset - accumulated depreciation`
cash receipts journal
capital assets
basic - pro - premium
5. Lists all customers and their outstanding balances for non cash or on account sales made
Accounts Payable Ledger
Accounts Payable Ledger
accounts receivable ledger
Sales
6. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
accounts payable ledger
capital assets
business number
depreciation
7. When you proceed to reconcile your bank account you will use these two things
outstanding deposits
capital assets
integrated
cash receipts and cash disbursements journals
8. Assets that have no physical form - but have value and are an integral part of the cost of doing business
intangible capital assets
common share accounts - preferred share accounts
licenses
express or custom
9. A legal document giving official permission to do something
finished goods inventory
licenses
capital assets
drawings account
10. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
statement of owners equity
licenses
general ledger trial balance
intangible capital assets
11. All the checks that have not appeared on the bank statement
outstanding checks
Shareholders equity
non-operating income
capital assets
12. 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
purchase invoice
trademarks
cash receipts journal
bookkeeping
13. One is maintained for all classes of capital assets
trademarks
accounts payable and accrued expenses
Shareholders equity
depreciation expense account
14. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
Accounts Receivable Ledger
Shareholders equity
general ledger trial balance
finished goods inventory
15. This business does not have a purchase account and no inventory is recorded on the balance sheet
residual value
current assets
service business
drawings account
16. Must be held for use in the production of goods and/or services
sales journal
net book value
petty cash record
capital assets
17. A business that is owned by a single individual
proprietor
sole proprietorship
petty cash account
net value
18. Shareholders equity contains two different types of accounts.... What are they
partnership agreement
Accounts Receivable Ledger
straight line depreciation
Share capital accounts - retained earnings
19. 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.
common share accounts - preferred share accounts
work in process inventory
Sales
long term liabilities
20. A business that offers services to the public
income before taxes
capital assets
declining balance method
service company
21. Used to write off the cost of an intangible capital asset
amortization
invoices
purchase journal
goodwill
22. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
income tax expenses - income tax payable
land
declining balance method
Income Summary - revenue - expense - capital
23. What account is on the purchases and cash disbursements journals
Accounts payable
petty cash record
land
integration
24. Includes the costs of all goods that are complete and ready for sale
finished goods inventory
capital assets
long term liabilities
Accounts Payable Ledger
25. 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
manufacturing organizations
partnership
declining balance method
land
26. A business owned by one or more individuals who are known as shareholders
Share capital accounts - retained earnings
reconciling the petty cash account
income after taxes
corporation
27. 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
work in process inventory
Accounts Receivable Ledger
Income Summary - revenue - expense - capital
common share accounts - preferred share accounts
28. What is the formula for calculating straight-line depreciation
service business
(cost of capital asset - residual value) / (expected useful life of capital asset)
residual value
corporation
29. As a rule these should always be recorded on the balance sheet at cost
capital assets
declining balance method
drawings - capital - Income Summary - capital
merchandising business
30. Information from the sales invoice is recorded In what journal
Accounts Receivable Ledger
capital assets
land
sales journal
31. Calculated from adding the non operating expenses to the net income
income before taxes
purchase journal
common share accounts - preferred share accounts
trial balance
32. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
capital assets
licenses
cash receipts journal
petty cash record
33. A separate one is maintained for each class of capital assets
cash receipts and cash disbursements journals
daily
accumulated depreciation account
intangible capital assets
34. 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
finished goods inventory
accounts payable ledger
Accounts Receivable Ledger
service business
35. Information from the purchase invoice is recorded In what journal
purchase journal
statement of owners equity
trial balance
board of directors
36. 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
retained earnings account
trademarks
service business
net book value = original cost of asset - accumulated depreciation`
37. What is used to reference a company's Canadian GST and HST
business number
statement of owners equity
trademarks
non-operating income
38. Lists all vendors to whom your company has purchases
sole proprietorship
raw material inventory
corporation
Accounts Payable Ledger
39. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
straight line depreciation
net book value = original cost of asset - accumulated depreciation`
Accounts Payable Ledger
accounts receivable ledger
40. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
invoices
Cost of Goods Sold
common share accounts - preferred share accounts
Accounts Payable Ledger
41. Oversees the management of the company/corporation
capital assets
depreciation = net book value * %
board of directors
trial balance
42. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
bank reconciliation statement
capital account
long term liabilities
current liabilities
43. The process of recording the transactions and financial activities of a business
raw material inventory
amortization
bookkeeping
land
44. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
Cost of Goods Sold
Income Summary - revenue - expense - capital
residual value
patents
45. Listed on the balance sheet are assets that can be turned into cash within one year
service business
accounts receivable ledger
capital account
current assets
46. 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
common share accounts - preferred share accounts
express or custom
drawings - capital - Income Summary - capital
manufacturing organizations
47. Are not intended for resale
business number
board of directors
capital assets
net income
48. The ledgers are linked to the general ledger by this process
declining balance method
service business
integration
express or custom
49. A partnership has a separate __________ and ____________ account for each partner
capital and drawings account
raw material inventory
bookkeeping
long term liabilities
50. First part of the income statement
trial balance
trademarks
income after taxes
Sales