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






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






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






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






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






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






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






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






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






10. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing






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






12. Oversees the management of the company/corporation






13. 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






14. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement






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






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






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






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






19. 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






20. 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






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






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






23. What are the three versions of simply accounting






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






25. Documents issued by companies as evidence of transactions made






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






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






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






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






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






31. In a corporations books - the equity section is referred to as _________ ________






32. Represents the expected value of the asset at the end of its useful life to the business






33. Signed by all partners in a partneship to establish rules about how the business is going to be run






34. 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






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






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






37. You only have to enter business data once






38. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years






39. A legal document giving official permission to do something






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






41. 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






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






43. A list of all the disbursements made from your petty cash in the box with the receipts and the cash






44. Owner of a business owned by a single individual






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






46. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory






47. A separate one is maintained for each class of capital assets






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






49. 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






50. First part of the income statement