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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. Amounts owed by the company that are due within one year of the balance sheet date






2. 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






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






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






5. This is reported after the net income on an income statement






6. Consist of physical assets and non-physical or intangible properties






7. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared






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






9. Formula to calculate the net book value






10. Oversees the management of the company/corporation






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






12. When a merchandising business prepares its income statement it includes a section called.....






13. Assets that have no physical form - but have value and are an integral part of the cost of doing business






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






15. You only have to enter business data once






16. Two types of share capital accounts






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






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






19. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers






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






21. 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






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






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






24. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention






25. Has an indefinate life span and is not considered to reduce in value over time






26. 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






27. 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






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






29. Also know as the net book value






30. 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






31. Calculated from adding the non operating expenses to the net income






32. Prepared by sole proprietors and partnerships






33. Who makes the decision on the amount to keep in the petty cash account






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






35. A business that offers services to the public






36. Owner of a business owned by a single individual






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






38. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset






39. What is the formula for calculating straight-line depreciation






40. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset






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






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






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






44. First part of the income statement






45. Account maintained for small purchases






46. Information from the purchase invoice is recorded In what journal






47. 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






48. 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.






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






50. Lists all vendors to whom your company has purchases