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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. Shareholders equity contains two different types of accounts.... What are they
Share capital accounts - retained earnings
board of directors
goodwill
accounts payable and accrued expenses
2. 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
residual value
drawings - capital - Income Summary - capital
cash receipts journal
gross margin
3. Prepared by sole proprietors and partnerships
accounts receivable ledger
drawings account
statement of owners equity
residual value
4. 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
sales journal
accounts payable and accrued expenses
non-operating income
service company
5. A business that offers services to the public
income before taxes
statement of owners equity
service company
income tax expenses - income tax payable
6. Lists all vendors to whom your company has purchases
statement of retained earnings
Accounts Payable Ledger
raw material inventory
drawings account
7. What are the three versions of simply accounting
accounts receivable ledger trial balance
sales journal
basic - pro - premium
depreciation
8. Includes the costs of all goods that are complete and ready for sale
finished goods inventory
capital assets
patents
manufacturing organizations
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.
income tax expenses - income tax payable
earnings before interest and taxes
work in process inventory
bookkeeping
10. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
goodwill
cash disbursements journal
service company
purchase invoice
11. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
retained earnings account
land
petty cash record
gross margin
12. 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
current assets
partnership agreement
capital assets
bank reconciliation statement
13. In a corporations books - the equity section is referred to as _________ ________
Shareholders equity
statement of retained earnings
non-operating income
land
14. One is maintained for all classes of capital assets
current liabilities
depreciation expense account
capital assets
bank reconciliation statement
15. Owner of a business owned by a single individual
common share accounts - preferred share accounts
net value
patents
proprietor
16. The process of comparing the cash plus receipts to the original balance int he account
long term liabilities
declining balance method
amortization
reconciling the petty cash account
17. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
outstanding deposits
net book value
Accounts payable
retained earnings account
18. Account maintained for small purchases
trademarks
income tax expenses - income tax payable
petty cash account
net income
19. Represents the assets on hand - the liabilities owed and the owners equity
balance sheet
net book value = original cost of asset - accumulated depreciation`
accounts receivable ledger
retained earnings account
20. This business purchases products from its vendors for resale to its customers
Accounts Receivable Ledger
merchandising business
outstanding deposits
net book value
21. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
income after taxes
depreciation
service business
partnership
22. A partnership has a separate __________ and ____________ account for each partner
express or custom
corporation
capital and drawings account
current liabilities
23. This is reported after the net income on an income statement
non-operating income
net value
Sales
capital assets
24. 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
Shareholders equity
Cost of Goods Sold
patents
25. Signed by all partners in a partneship to establish rules about how the business is going to be run
partnership agreement
net value
land
retained earnings account
26. Consist of physical assets and non-physical or intangible properties
net book value
income statement
non-operating income
capital assets
27. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
outstanding checks
Accounts Receivable Ledger
non-operating income
Shareholders equity
28. When you proceed to reconcile your bank account you will use these two things
service business
cash receipts and cash disbursements journals
income statement
Share capital accounts - retained earnings
29. How often are the accounts payable entries entered into the accounts payable ledger
daily
basic - pro - premium
business number
straight line depreciation
30. What account is on the cash receipts and sales journals
accounts receivable
net income
cash receipts journal
net value
31. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
Accounts Receivable Ledger
depreciation = net book value * %
daily
merchandising business
32. A business that is owned by a single individual
goodwill
sole proprietorship
service business
service business
33. Are not intended for resale
non-operating income
capital assets
bank reconciliation statement
Share capital accounts - retained earnings
34. Net income is also known as this on an income statement
earnings before interest and taxes
accounts receivable ledger
proprietor
net income
35. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
bookkeeping
Accounts Payable Ledger
Income Summary - revenue - expense - capital
straight line depreciation
36. All daily transactions are entered through these
depreciation expense account
patents
Accounts Receivable Ledger
modules
37. Information from the sales invoice is recorded In what journal
sales journal
net book value = original cost of asset - accumulated depreciation`
income statement
accounts receivable ledger
38. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
income tax expenses - income tax payable
declining balance method
earnings before interest and taxes
statement of retained earnings
39. Calculated by subtracting sales from the cogs
patents
intangible capital assets
Share capital accounts - retained earnings
gross margin
40. Assets that have no physical form - but have value and are an integral part of the cost of doing business
licenses
accounts receivable ledger trial balance
service business
intangible capital assets
41. When a merchandising business prepares its income statement it includes a section called.....
bank reconciliation statement
Cost of Goods Sold
income statement
petty cash account
42. A record of a purchase made by a company - showing the terms and conditions for payment
gross margin
amortization
purchase invoice
balance sheet
43. Must be held for use in the production of goods and/or services
land
capital assets
depreciation expense account
raw material inventory
44. This business does not have a purchase account and no inventory is recorded on the balance sheet
service business
petty cash account
balance sheet
modules
45. 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 ledger trial balance
Share capital accounts - retained earnings
land
integrated
46. Documents issued by companies as evidence of transactions made
retained earnings account
net book value = original cost of asset - accumulated depreciation`
invoices
income statement
47. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
partnership agreement
intangible capital assets
net income
capital assets
48. 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
outstanding deposits
Income Summary - revenue - expense - capital
accounts receivable ledger
Accounts Receivable Ledger
49. Lists all customers and their outstanding balances for non cash or on account sales made
merchandising business
accounts receivable ledger
cash disbursements journal
modules
50. Who makes the decision on the amount to keep in the petty cash account
management
modules
non-operating income
partnership