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






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






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






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






5. All the checks that have not appeared on the bank statement






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






7. 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.






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






9. 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






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






11. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset






12. Prepared by sole proprietors and partnerships






13. 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






14. What is used to reference a company's Canadian GST and HST






15. Account maintained for small purchases






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






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






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






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






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






21. Oversees the management of the company/corporation






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






23. 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






24. A business that offers services to the public






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






26. 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






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






28. Also know as the net book value






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






30. Owner of a business owned by a single individual






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






32. A business owned by one or more individuals who are known as shareholders






33. All daily transactions are entered through these






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






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






36. 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






37. Calculated by subtracting sales from the cogs






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






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






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






41. Lists all vendors to whom your company has purchases






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






43. 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






44. 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






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






46. 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






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






48. You only have to enter business data once






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






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