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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. What account is on the purchases and cash disbursements journals
retained earnings account
common share accounts - preferred share accounts
trademarks
Accounts payable
2. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
net book value = original cost of asset - accumulated depreciation`
trial balance
capital and drawings account
capital account
3. 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
Income Summary - revenue - expense - capital
trial balance
(cost of capital asset - residual value) / (expected useful life of capital asset)
land
4. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
amortization
declining balance method
common share accounts - preferred share accounts
retained earnings account
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.
bank reconciliation statement
amortization
trademarks
work in process inventory
6. In a corporations books - the equity section is referred to as _________ ________
statement of retained earnings
Shareholders equity
Accounts Payable Ledger
current assets
7. Companies that transform raw materials into finished goods for sale
manufacturing organizations
service company
Shareholders equity
land
8. Account used to record the net income that is retained in the business at the end of the year
long term liabilities
retained earnings account
trademarks
net value
9. The process of recording the transactions and financial activities of a business
bookkeeping
balance sheet
sales journal
Accounts Receivable Ledger
10. As a rule these should always be recorded on the balance sheet at cost
capital assets
corporation
income after taxes
proprietor
11. Signed by all partners in a partneship to establish rules about how the business is going to be run
cash receipts and cash disbursements journals
land
patents
partnership agreement
12. 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
non-operating income
land
capital assets
service company
13. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
capital account
service business
income after taxes
raw material inventory
14. Formula to calculate the net book value
net book value = original cost of asset - accumulated depreciation`
Cost of Goods Sold
statement of retained earnings
reconciling the petty cash account
15. Information from the sales invoice is recorded In what journal
net book value
Shareholders equity
capital assets
sales journal
16. Represents the assets on hand - the liabilities owed and the owners equity
balance sheet
amortization
capital assets
basic - pro - premium
17. Has an indefinate life span and is not considered to reduce in value over time
net value
proprietor
land
licenses
18. Amounts owed by the company that are due within one year of the balance sheet date
current liabilities
land
integration
accounts payable ledger
19. Must be held for use in the production of goods and/or services
common share accounts - preferred share accounts
accounts receivable
capital assets
service company
20. Account maintained for small purchases
petty cash account
net book value
cash receipts and cash disbursements journals
manufacturing organizations
21. Calculated by subtracting sales from the cogs
gross margin
capital assets
partnership agreement
accounts payable and accrued expenses
22. Information from the purchase invoice is recorded In what journal
purchase journal
goodwill
capital assets
bookkeeping
23. Prepared by corporations - similar to a statement of owners equity
capital and drawings account
statement of retained earnings
modules
retained earnings account
24. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
merchandising business
raw material inventory
capital assets
business number
25. The ledgers are linked to the general ledger by this process
straight line depreciation
gross margin
integration
retained earnings account
26. Shows how much income has been earned b the business during the time period
service business
Income Summary - revenue - expense - capital
service company
income statement
27. 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
Income Summary - revenue - expense - capital
trademarks
cash receipts journal
patents
28. A legal document giving official permission to do something
declining balance method
service company
earnings before interest and taxes
licenses
29. 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
Income Summary - revenue - expense - capital
partnership
Accounts Receivable Ledger
purchase journal
30. 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
accounts receivable ledger
service company
31. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
board of directors
drawings account
patents
declining balance method
32. When you proceed to reconcile your bank account you will use these two things
merchandising business
sole proprietorship
capital assets
cash receipts and cash disbursements journals
33. Oversees the management of the company/corporation
accounts payable ledger
statement of retained earnings
gross margin
board of directors
34. Prepared by sole proprietors and partnerships
bookkeeping
finished goods inventory
balance sheet
statement of owners equity
35. A business owned by one or more individuals who are known as shareholders
corporation
board of directors
Accounts Payable Ledger
Accounts payable
36. All the checks that have not appeared on the bank statement
Accounts Receivable Ledger
sole proprietorship
outstanding checks
accumulated depreciation account
37. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
reconciling the petty cash account
Accounts Payable Ledger
gross margin
capital assets
38. Account is reduced by the value of dividends paid to the shareholder
integration
merchandising business
retained earnings account
land
39. Shareholders equity contains two different types of accounts.... What are they
capital and drawings account
board of directors
Share capital accounts - retained earnings
Cost of Goods Sold
40. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
service business
retained earnings account
net book value
Sales
41. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
income statement
Income Summary - revenue - expense - capital
petty cash record
common share accounts - preferred share accounts
42. Who makes the decision on the amount to keep in the petty cash account
management
capital assets
bookkeeping
capital and drawings account
43. Calculated from adding the non operating expenses to the net income
trial balance
invoices
income before taxes
express or custom
44. This business purchases products from its vendors for resale to its customers
land
net book value = original cost of asset - accumulated depreciation`
merchandising business
Shareholders equity
45. Represents the expected value of the asset at the end of its useful life to the business
balance sheet
purchase journal
service company
residual value
46. 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
net value
accounts payable and accrued expenses
(cost of capital asset - residual value) / (expected useful life of capital asset)
land
47. One is maintained for all classes of capital assets
bank reconciliation statement
depreciation expense account
net value
depreciation
48. 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
bookkeeping
service company
drawings account
drawings - capital - Income Summary - capital
49. Includes the costs of all goods that are complete and ready for sale
current assets
finished goods inventory
accounts payable ledger
sole proprietorship
50. This business does not have a purchase account and no inventory is recorded on the balance sheet
net book value
service business
depreciation = net book value * %
income statement