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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. Owner of a business owned by a single individual
outstanding deposits
capital assets
proprietor
declining balance method
2. Consist of physical assets and non-physical or intangible properties
net book value = original cost of asset - accumulated depreciation`
capital assets
general ledger trial balance
invoices
3. This business purchases products from its vendors for resale to its customers
service business
income statement
Accounts Payable Ledger
merchandising business
4. The process of comparing the cash plus receipts to the original balance int he account
capital assets
land
board of directors
reconciling the petty cash account
5. Account maintained for small purchases
depreciation = net book value * %
long term liabilities
management
petty cash account
6. Documents issued by companies as evidence of transactions made
invoices
accounts receivable ledger trial balance
integrated
bank reconciliation statement
7. Calculated by subtracting sales from the cogs
gross margin
(cost of capital asset - residual value) / (expected useful life of capital asset)
finished goods inventory
outstanding checks
8. 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
drawings - capital - Income Summary - capital
licenses
purchase invoice
9. What is the formula for calculating straight-line depreciation
depreciation
modules
statement of retained earnings
(cost of capital asset - residual value) / (expected useful life of capital asset)
10. 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
partnership agreement
accounts receivable ledger trial balance
current liabilities
amortization
11. 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
retained earnings account
income after taxes
general ledger trial balance
12. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
amortization
income after taxes
purchase invoice
Accounts Receivable Ledger
13. The ledgers are linked to the general ledger by this process
earnings before interest and taxes
integration
capital account
income before taxes
14. One is maintained for all classes of capital assets
depreciation expense account
accounts receivable ledger trial balance
capital assets
patents
15. Represents the expected value of the asset at the end of its useful life to the business
residual value
Share capital accounts - retained earnings
non-operating income
bookkeeping
16. Prepared by sole proprietors and partnerships
express or custom
Sales
statement of owners equity
income after taxes
17. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
bookkeeping
residual value
general ledger trial balance
Cost of Goods Sold
18. What is used to reference a company's Canadian GST and HST
licenses
outstanding checks
retained earnings account
business number
19. All daily transactions are entered through these
modules
depreciation = net book value * %
declining balance method
goodwill
20. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
long term liabilities
bookkeeping
Accounts Payable Ledger
capital assets
21. A business that offers services to the public
purchase journal
retained earnings account
Accounts Payable Ledger
service company
22. Shows how much income has been earned b the business during the time period
net book value = original cost of asset - accumulated depreciation`
invoices
earnings before interest and taxes
income statement
23. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
intangible capital assets
accounts receivable ledger trial balance
Cost of Goods Sold
service business
24. Amounts owed by the company that are due within one year of the balance sheet date
Share capital accounts - retained earnings
current liabilities
capital assets
management
25. Account is reduced by the value of dividends paid to the shareholder
Accounts Receivable Ledger
retained earnings account
capital assets
raw material inventory
26. 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
bank reconciliation statement
daily
capital assets
purchase journal
27. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
accounts receivable ledger
purchase invoice
land
capital account
28. Calculated from adding the non operating expenses to the net income
petty cash record
Income Summary - revenue - expense - capital
income before taxes
business number
29. As a rule these should always be recorded on the balance sheet at cost
capital assets
purchase invoice
retained earnings account
gross margin
30. Has an indefinate life span and is not considered to reduce in value over time
partnership agreement
management
land
gross margin
31. 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
capital and drawings account
service business
accounts payable ledger
patents
32. 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
cash disbursements journal
land
service company
33. Signed by all partners in a partneship to establish rules about how the business is going to be run
partnership agreement
net income
Share capital accounts - retained earnings
capital assets
34. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
raw material inventory
capital assets
Accounts Payable Ledger
capital assets
35. Companies that transform raw materials into finished goods for sale
outstanding checks
manufacturing organizations
sales journal
retained earnings account
36. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
manufacturing organizations
net income
trademarks
depreciation
37. What are the three versions of simply accounting
declining balance method
integration
capital assets
basic - pro - premium
38. Represents the assets on hand - the liabilities owed and the owners equity
accounts receivable ledger
goodwill
net value
balance sheet
39. This is reported after the net income on an income statement
business number
licenses
net book value = original cost of asset - accumulated depreciation`
non-operating income
40. What account is on the cash receipts and sales journals
accounts receivable
common share accounts - preferred share accounts
cash receipts journal
net book value
41. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
income after taxes
corporation
Accounts payable
drawings account
42. A number of owners join together and create one business in which they each own an agreed upon percentage
income before taxes
partnership
accounts receivable ledger trial balance
purchase journal
43. Who makes the decision on the amount to keep in the petty cash account
management
declining balance method
current liabilities
partnership agreement
44. A business that is owned by a single individual
merchandising business
depreciation = net book value * %
long term liabilities
sole proprietorship
45. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
land
depreciation expense account
capital assets
straight line depreciation
46. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
patents
service company
petty cash account
income statement
47. Lists all customers and their outstanding balances for non cash or on account sales made
accounts receivable ledger
capital assets
income after taxes
(cost of capital asset - residual value) / (expected useful life of capital asset)
48. What account is on the purchases and cash disbursements journals
land
depreciation
Accounts payable
accounts receivable
49. A business owned by one or more individuals who are known as shareholders
retained earnings account
accounts receivable
corporation
purchase invoice
50. A legal document giving official permission to do something
capital assets
licenses
retained earnings account
raw material inventory