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






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






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






4. What are the three versions of simply accounting






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






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






7. 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






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






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






10. First part of the income statement






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






12. 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






13. 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






14. Consist of physical assets and non-physical or intangible properties






15. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax






16. Who makes the decision on the amount to keep in the petty cash account






17. Prepared by sole proprietors and partnerships






18. Formula to calculate the net book value






19. 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






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






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






22. All daily transactions are entered through these






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






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






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






26. One is maintained for all classes of capital assets






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






28. 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






29. 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






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






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






32. 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.






33. Also know as the net book value






34. Two types of share capital accounts






35. Includes the costs of all goods that are complete and ready for sale






36. Listed on the balance sheet are assets that can be turned into cash within one year






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






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






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






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






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






42. 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






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






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






45. Represents the assets on hand - the liabilities owed and the owners equity






46. A legal document giving official permission to do something






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






48. 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






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






50. Calculated by subtracting sales from the cogs