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






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






3. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______






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






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






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






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






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






9. 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






10. Lists all vendors to whom your company has purchases






11. A business that is owned by a single individual






12. 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






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






14. Oversees the management of the company/corporation






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






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






17. A legal document giving official permission to do something






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






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






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






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






22. Also know as the net book value






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






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






25. 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






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






27. Formula to calculate the depreciation for the year






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






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






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






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






33. What account is on the purchases and cash disbursements journals






34. Represents the assets on hand - the liabilities owed and the owners equity






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






36. First part of the income statement






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






38. 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






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






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






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






42. 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






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






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






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






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






47. Are not intended for resale






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






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






50. 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