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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. Are not intended for resale
capital assets
management
depreciation = net book value * %
general ledger trial balance
2. A record of a purchase made by a company - showing the terms and conditions for payment
purchase invoice
income after taxes
integrated
statement of owners equity
3. Represents the expected value of the asset at the end of its useful life to the business
accounts receivable ledger
residual value
general ledger trial balance
merchandising business
4. Information from the sales invoice is recorded In what journal
Shareholders equity
cash disbursements journal
Accounts Payable Ledger
sales journal
5. 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
land
depreciation
statement of owners equity
purchase invoice
6. Account maintained for small purchases
net value
long term liabilities
petty cash account
drawings account
7. Listed on the balance sheet are assets that can be turned into cash within one year
current assets
retained earnings account
accounts receivable ledger
partnership agreement
8. 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
goodwill
service business
patents
invoices
9. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
depreciation expense account
net book value
land
express or custom
10. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
integrated
depreciation
Accounts Receivable Ledger
partnership agreement
11. In a corporations books - the equity section is referred to as _________ ________
Shareholders equity
straight line depreciation
capital assets
outstanding checks
12. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
manufacturing organizations
accounts receivable ledger
accounts payable and accrued expenses
capital assets
13. Lists all vendors to whom your company has purchases
Accounts Payable Ledger
drawings - capital - Income Summary - capital
bookkeeping
net book value = original cost of asset - accumulated depreciation`
14. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
capital and drawings account
common share accounts - preferred share accounts
depreciation
raw material inventory
15. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
income after taxes
accounts receivable
intangible capital assets
drawings account
16. Information from the purchase invoice is recorded In what journal
common share accounts - preferred share accounts
accounts receivable
express or custom
purchase journal
17. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
common share accounts - preferred share accounts
net income
daily
statement of retained earnings
18. 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
express or custom
Income Summary - revenue - expense - capital
current assets
purchase journal
19. Calculated from adding the non operating expenses to the net income
straight line depreciation
income statement
business number
income before taxes
20. Used to write off the cost of an intangible capital asset
drawings account
amortization
management
income statement
21. Companies that transform raw materials into finished goods for sale
Sales
Accounts Receivable Ledger
manufacturing organizations
raw material inventory
22. Owner of a business owned by a single individual
accounts payable and accrued expenses
proprietor
outstanding checks
net value
23. Assets that have no physical form - but have value and are an integral part of the cost of doing business
net book value
licenses
intangible capital assets
depreciation expense account
24. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
integrated
statement of retained earnings
Sales
Accounts Receivable Ledger
25. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
common share accounts - preferred share accounts
capital account
Shareholders equity
goodwill
26. Has an indefinate life span and is not considered to reduce in value over time
bank reconciliation statement
patents
Shareholders equity
land
27. 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.
statement of owners equity
Accounts payable
basic - pro - premium
work in process inventory
28. You only have to enter business data once
sales journal
income tax expenses - income tax payable
integrated
net value
29. The ledgers are linked to the general ledger by this process
amortization
integration
purchase journal
retained earnings account
30. Prepared by sole proprietors and partnerships
residual value
Accounts Payable Ledger
net book value
statement of owners equity
31. 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
common share accounts - preferred share accounts
service business
proprietor
reconciling the petty cash account
32. A number of owners join together and create one business in which they each own an agreed upon percentage
current liabilities
partnership
finished goods inventory
accumulated depreciation account
33. This is reported after the net income on an income statement
non-operating income
amortization
petty cash record
work in process inventory
34. Amounts owed by the company that are due within one year of the balance sheet date
basic - pro - premium
current liabilities
income statement
drawings account
35. When a merchandising business prepares its income statement it includes a section called.....
partnership agreement
declining balance method
patents
Cost of Goods Sold
36. Deposits that have not yet been deposited in the bank account
capital account
outstanding deposits
accounts payable and accrued expenses
business number
37. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
capital assets
licenses
declining balance method
income after taxes
38. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
general ledger trial balance
capital assets
Accounts Receivable Ledger
land
39. Shows how much income has been earned b the business during the time period
accounts receivable ledger
Accounts Receivable Ledger
Income Summary - revenue - expense - capital
income statement
40. 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
statement of retained earnings
current assets
drawings - capital - Income Summary - capital
manufacturing organizations
41. 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
residual value
statement of owners equity
basic - pro - premium
42. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
net book value
Accounts Receivable Ledger
proprietor
service business
43. 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
land
service company
capital assets
goodwill
44. Lists all customers and their outstanding balances for non cash or on account sales made
accounts receivable ledger
accumulated depreciation account
accounts payable and accrued expenses
capital and drawings account
45. 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
purchase journal
net income
trial balance
outstanding deposits
46. Formula to calculate the depreciation for the year
finished goods inventory
common share accounts - preferred share accounts
long term liabilities
depreciation = net book value * %
47. All daily transactions are entered through these
modules
work in process inventory
Sales
depreciation = net book value * %
48. A separate one is maintained for each class of capital assets
invoices
capital assets
accumulated depreciation account
accounts receivable ledger trial balance
49. Calculated by subtracting sales from the cogs
income after taxes
gross margin
income statement
petty cash record
50. Account is reduced by the value of dividends paid to the shareholder
drawings - capital - Income Summary - capital
accounts receivable ledger
capital and drawings account
retained earnings account