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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. A business that offers services to the public
income before taxes
service company
accounts receivable ledger
straight line depreciation
2. Also know as the net book value
retained earnings account
net value
Shareholders equity
Accounts payable
3. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
board of directors
cash disbursements journal
Accounts payable
work in process inventory
4. Formula to calculate the net book value
net book value = original cost of asset - accumulated depreciation`
long term liabilities
residual value
service business
5. Account used to record the net income that is retained in the business at the end of the year
retained earnings account
general ledger trial balance
residual value
net book value = original cost of asset - accumulated depreciation`
6. Assets that have no physical form - but have value and are an integral part of the cost of doing business
Share capital accounts - retained earnings
intangible capital assets
bookkeeping
work in process inventory
7. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
land
land
Accounts Receivable Ledger
express or custom
8. This is reported after the net income on an income statement
statement of owners equity
non-operating income
accounts payable ledger
accounts receivable ledger
9. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
capital assets
net income
capital and drawings account
balance sheet
10. Who makes the decision on the amount to keep in the petty cash account
management
non-operating income
reconciling the petty cash account
Cost of Goods Sold
11. 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
bank reconciliation statement
goodwill
capital account
12. Represents the assets on hand - the liabilities owed and the owners equity
balance sheet
sole proprietorship
gross margin
Shareholders equity
13. 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.
work in process inventory
depreciation = net book value * %
drawings account
raw material inventory
14. In a corporations books - the equity section is referred to as _________ ________
declining balance method
raw material inventory
income before taxes
Shareholders equity
15. You only have to enter business data once
trademarks
land
board of directors
integrated
16. A record of a purchase made by a company - showing the terms and conditions for payment
land
straight line depreciation
finished goods inventory
purchase invoice
17. Used to write off the cost of an intangible capital asset
depreciation expense account
capital and drawings account
patents
amortization
18. Represents the expected value of the asset at the end of its useful life to the business
statement of owners equity
residual value
Accounts payable
management
19. Account is reduced by the value of dividends paid to the shareholder
long term liabilities
management
purchase journal
retained earnings account
20. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
cash receipts and cash disbursements journals
retained earnings account
capital assets
Cost of Goods Sold
21. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
current assets
Accounts Payable Ledger
modules
proprietor
22. The ledgers are linked to the general ledger by this process
capital assets
accounts payable and accrued expenses
integration
accounts receivable
23. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
basic - pro - premium
capital assets
net book value
accounts receivable ledger trial balance
24. Calculated by subtracting sales from the cogs
gross margin
licenses
drawings account
cash receipts journal
25. 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
trademarks
land
intangible capital assets
bookkeeping
26. Account maintained for small purchases
sole proprietorship
general ledger trial balance
Accounts Payable Ledger
petty cash account
27. Lists all vendors to whom your company has purchases
gross margin
Accounts Payable Ledger
Sales
net value
28. 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
gross margin
Income Summary - revenue - expense - capital
express or custom
depreciation = net book value * %
29. What account is on the purchases and cash disbursements journals
non-operating income
net value
depreciation expense account
Accounts payable
30. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
accounts receivable ledger
income before taxes
corporation
drawings - capital - Income Summary - capital
31. Are not intended for resale
capital assets
Cost of Goods Sold
Sales
corporation
32. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
licenses
capital and drawings account
Sales
raw material inventory
33. Amounts owed by the company that are due within one year of the balance sheet date
partnership agreement
daily
current liabilities
accounts receivable ledger trial balance
34. When a merchandising business prepares its income statement it includes a section called.....
capital assets
Cost of Goods Sold
modules
work in process inventory
35. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
declining balance method
general ledger trial balance
Share capital accounts - retained earnings
capital and drawings account
36. Deposits that have not yet been deposited in the bank account
outstanding deposits
reconciling the petty cash account
net book value
gross margin
37. What is used to reference a company's Canadian GST and HST
trial balance
business number
accounts receivable ledger trial balance
drawings - capital - Income Summary - capital
38. The process of recording the transactions and financial activities of a business
income before taxes
bookkeeping
Accounts Payable Ledger
outstanding checks
39. 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
service business
accounts payable ledger
service business
earnings before interest and taxes
40. A partnership has a separate __________ and ____________ account for each partner
basic - pro - premium
capital and drawings account
bookkeeping
land
41. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
straight line depreciation
Cost of Goods Sold
depreciation = net book value * %
corporation
42. When you proceed to reconcile your bank account you will use these two things
cash receipts and cash disbursements journals
capital assets
statement of owners equity
Income Summary - revenue - expense - capital
43. Has an indefinate life span and is not considered to reduce in value over time
sole proprietorship
income tax expenses - income tax payable
purchase invoice
land
44. Calculated from adding the non operating expenses to the net income
accumulated depreciation account
income before taxes
net book value = original cost of asset - accumulated depreciation`
accounts receivable ledger trial balance
45. A number of owners join together and create one business in which they each own an agreed upon percentage
partnership
net book value
drawings account
retained earnings account
46. Consist of physical assets and non-physical or intangible properties
Income Summary - revenue - expense - capital
work in process inventory
capital assets
merchandising business
47. Prepared by sole proprietors and partnerships
statement of owners equity
income after taxes
drawings - capital - Income Summary - capital
capital assets
48. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
amortization
(cost of capital asset - residual value) / (expected useful life of capital asset)
depreciation
drawings - capital - Income Summary - capital
49. Signed by all partners in a partneship to establish rules about how the business is going to be run
raw material inventory
net income
partnership agreement
outstanding deposits
50. The two start up methods on simply accountin through the set up wizard
residual value
express or custom
modules
accounts receivable