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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. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
depreciation
Cost of Goods Sold
long term liabilities
drawings - capital - Income Summary - capital
2. Must have a useful life of more than one year
capital assets
amortization
cash receipts journal
trademarks
3. Oversees the management of the company/corporation
balance sheet
net income
accounts receivable ledger trial balance
board of directors
4. Documents issued by companies as evidence of transactions made
statement of retained earnings
accounts receivable ledger
invoices
express or custom
5. Deposits that have not yet been deposited in the bank account
net income
service company
outstanding checks
outstanding deposits
6. 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
service company
service business
capital and drawings account
earnings before interest and taxes
7. Must be held for use in the production of goods and/or services
Sales
daily
capital assets
capital account
8. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
goodwill
land
capital account
accounts payable ledger
9. The two start up methods on simply accountin through the set up wizard
capital assets
income before taxes
express or custom
board of directors
10. The process of recording the transactions and financial activities of a business
modules
drawings account
non-operating income
bookkeeping
11. First part of the income statement
cash disbursements journal
petty cash account
Sales
declining balance method
12. Owner of a business owned by a single individual
capital assets
proprietor
capital assets
service company
13. 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
accounts receivable ledger
Cost of Goods Sold
depreciation expense account
goodwill
14. The process of comparing the cash plus receipts to the original balance int he account
accounts receivable ledger trial balance
accumulated depreciation account
reconciling the petty cash account
capital assets
15. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
net income
earnings before interest and taxes
current liabilities
common share accounts - preferred share accounts
16. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
net income
straight line depreciation
accounts receivable ledger trial balance
petty cash record
17. Who makes the decision on the amount to keep in the petty cash account
management
Accounts Receivable Ledger
income after taxes
sole proprietorship
18. A business owned by one or more individuals who are known as shareholders
merchandising business
corporation
basic - pro - premium
cash disbursements journal
19. Formula to calculate the depreciation for the year
integrated
petty cash account
depreciation = net book value * %
Cost of Goods Sold
20. A legal document giving official permission to do something
finished goods inventory
Shareholders equity
drawings account
licenses
21. A business that offers services to the public
trademarks
service company
sales journal
depreciation
22. You only have to enter business data once
integrated
accounts receivable ledger trial balance
Accounts Payable Ledger
intangible capital assets
23. When you proceed to reconcile your bank account you will use these two things
petty cash record
service company
cash receipts and cash disbursements journals
corporation
24. 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
corporation
straight line depreciation
accounts payable and accrued expenses
accounts receivable ledger
25. Account maintained for small purchases
sole proprietorship
Accounts Receivable Ledger
petty cash account
depreciation
26. 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
earnings before interest and taxes
statement of owners equity
trial balance
goodwill
27. Used to write off the cost of an intangible capital asset
capital assets
gross margin
amortization
long term liabilities
28. Has an indefinate life span and is not considered to reduce in value over time
land
(cost of capital asset - residual value) / (expected useful life of capital asset)
capital assets
bookkeeping
29. Signed by all partners in a partneship to establish rules about how the business is going to be run
partnership agreement
income statement
accounts receivable
express or custom
30. 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
cash receipts journal
retained earnings account
capital assets
sales journal
31. In a corporations books - the equity section is referred to as _________ ________
Accounts payable
income before taxes
manufacturing organizations
Shareholders equity
32. Includes all debt that is due in more than one year
accounts payable ledger
purchase invoice
long term liabilities
Accounts Payable Ledger
33. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
outstanding deposits
Accounts Payable Ledger
declining balance method
bank reconciliation statement
34. Information from the sales invoice is recorded In what journal
capital account
accounts receivable ledger
sales journal
outstanding checks
35. 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
capital assets
drawings account
invoices
36. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
cash receipts journal
Accounts Receivable Ledger
income after taxes
income tax expenses - income tax payable
37. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
Shareholders equity
Accounts Receivable Ledger
cash receipts journal
depreciation = net book value * %
38. 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
bank reconciliation statement
capital assets
capital and drawings account
bookkeeping
39. What are the three versions of simply accounting
net income
non-operating income
land
basic - pro - premium
40. Represents the expected value of the asset at the end of its useful life to the business
capital and drawings account
Accounts Payable Ledger
residual value
petty cash account
41. Shows how much income has been earned b the business during the time period
retained earnings account
statement of retained earnings
gross margin
income statement
42. The ledgers are linked to the general ledger by this process
capital and drawings account
integration
accounts payable ledger
non-operating income
43. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
Share capital accounts - retained earnings
service business
cash disbursements journal
income after taxes
44. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
land
integration
depreciation
net book value
45. Listed on the balance sheet are assets that can be turned into cash within one year
current assets
non-operating income
merchandising business
retained earnings account
46. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
income statement
cash receipts journal
outstanding checks
Accounts Receivable Ledger
47. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
drawings account
basic - pro - premium
(cost of capital asset - residual value) / (expected useful life of capital asset)
intangible capital assets
48. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
trademarks
raw material inventory
Cost of Goods Sold
residual value
49. Account is reduced by the value of dividends paid to the shareholder
sole proprietorship
land
management
retained earnings account
50. 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
licenses
finished goods inventory
land
purchase invoice