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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. 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






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






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






4. 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






5. 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






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






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






8. Account maintained for small purchases






9. Oversees the management of the company/corporation






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






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






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






13. 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






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. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale






16. Includes all debt that is due in more than one year






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






18. Owner of a business owned by a single individual






19. Also know as the net book value






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






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






22. A record of a purchase made by a company - showing the terms and conditions for payment






23. Information from the sales invoice is recorded In what journal






24. What are the three versions of simply accounting






25. Lists all customers and their outstanding balances for non cash or on account sales made






26. Documents issued by companies as evidence of transactions made






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






28. 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






29. All daily transactions are entered through these






30. One is maintained for all classes of capital assets






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






32. Two types of share capital accounts






33. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes






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






35. The ledgers are linked to the general ledger by this process






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






37. Are not intended for resale






38. 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






39. Prepared by sole proprietors and partnerships






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






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






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






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






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






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






46. A business that is owned by a single individual






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






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






49. 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






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