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Test your basic knowledge |
Bookkeeping Advanced Vocab
Start Test
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. What are the three versions of simply accounting
drawings - capital - Income Summary - capital
capital and drawings account
basic - pro - premium
purchase invoice
2. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
intangible capital assets
Cost of Goods Sold
bank reconciliation statement
drawings account
3. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
sole proprietorship
Cost of Goods Sold
Accounts Receivable Ledger
sales journal
4. 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
petty cash account
land
integration
drawings - capital - Income Summary - capital
5. What is used to reference a company's Canadian GST and HST
long term liabilities
capital and drawings account
accounts receivable ledger
business number
6. The two start up methods on simply accountin through the set up wizard
express or custom
Sales
proprietor
purchase journal
7. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
depreciation
general ledger trial balance
declining balance method
drawings account
8. When you proceed to reconcile your bank account you will use these two things
cash receipts and cash disbursements journals
proprietor
Shareholders equity
retained earnings account
9. First part of the income statement
Shareholders equity
Sales
service company
cash receipts and cash disbursements journals
10. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
Cost of Goods Sold
basic - pro - premium
service company
service business
11. Assets that have no physical form - but have value and are an integral part of the cost of doing business
sole proprietorship
partnership agreement
intangible capital assets
cash receipts journal
12. Owner of a business owned by a single individual
service business
trademarks
proprietor
(cost of capital asset - residual value) / (expected useful life of capital asset)
13. Shows how much income has been earned b the business during the time period
land
income statement
purchase journal
capital assets
14. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
capital assets
income after taxes
capital assets
depreciation expense account
15. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
capital assets
intangible capital assets
Cost of Goods Sold
declining balance method
16. In a corporations books - the equity section is referred to as _________ ________
licenses
capital assets
accumulated depreciation account
Shareholders equity
17. Account used to record the net income that is retained in the business at the end of the year
work in process inventory
statement of retained earnings
income statement
retained earnings account
18. When a merchandising business prepares its income statement it includes a section called.....
merchandising business
Cost of Goods Sold
capital assets
integrated
19. Listed on the balance sheet are assets that can be turned into cash within one year
purchase journal
land
common share accounts - preferred share accounts
current assets
20. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
Sales
petty cash account
capital assets
cash disbursements journal
21. Calculated by subtracting sales from the cogs
Accounts Payable Ledger
gross margin
accumulated depreciation account
accounts receivable ledger
22. 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
service business
trial balance
land
licenses
23. Information from the sales invoice is recorded In what journal
sales journal
amortization
long term liabilities
depreciation
24. This business does not have a purchase account and no inventory is recorded on the balance sheet
service business
capital assets
accounts receivable ledger
trial balance
25. 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
board of directors
Income Summary - revenue - expense - capital
management
depreciation
26. A business that is owned by a single individual
Accounts Receivable Ledger
invoices
trial balance
sole proprietorship
27. Represents the assets on hand - the liabilities owed and the owners equity
balance sheet
Cost of Goods Sold
invoices
manufacturing organizations
28. Companies that transform raw materials into finished goods for sale
earnings before interest and taxes
cash disbursements journal
income statement
manufacturing organizations
29. You only have to enter business data once
licenses
income statement
Accounts Receivable Ledger
integrated
30. What account is on the cash receipts and sales journals
merchandising business
purchase invoice
non-operating income
accounts receivable
31. A legal document giving official permission to do something
accounts receivable ledger
licenses
straight line depreciation
long term liabilities
32. 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
management
land
earnings before interest and taxes
Accounts Receivable Ledger
33. Information from the purchase invoice is recorded In what journal
purchase journal
trial balance
cash disbursements journal
patents
34. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
cash receipts journal
cash disbursements journal
goodwill
accounts receivable ledger
35. The ledgers are linked to the general ledger by this process
integration
depreciation expense account
work in process inventory
corporation
36. Two types of share capital accounts
purchase invoice
business number
common share accounts - preferred share accounts
capital assets
37. 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
retained earnings account
goodwill
income statement
accounts payable ledger
38. 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
work in process inventory
(cost of capital asset - residual value) / (expected useful life of capital asset)
sales journal
39. A business owned by one or more individuals who are known as shareholders
land
basic - pro - premium
corporation
capital account
40. 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
accounts receivable ledger trial balance
Accounts Receivable Ledger
statement of owners equity
sole proprietorship
41. 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.
Accounts Payable Ledger
integration
work in process inventory
Accounts Receivable Ledger
42. Amounts owed by the company that are due within one year of the balance sheet date
Accounts Payable Ledger
current liabilities
income tax expenses - income tax payable
board of directors
43. 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
depreciation expense account
finished goods inventory
retained earnings account
44. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
declining balance method
integrated
service business
general ledger trial balance
45. Consist of physical assets and non-physical or intangible properties
outstanding deposits
capital assets
integrated
bookkeeping
46. Are not intended for resale
retained earnings account
raw material inventory
board of directors
capital assets
47. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
balance sheet
patents
petty cash record
manufacturing organizations
48. One is maintained for all classes of capital assets
Cost of Goods Sold
retained earnings account
patents
depreciation expense account
49. The process of recording the transactions and financial activities of a business
goodwill
bookkeeping
management
proprietor
50. All the checks that have not appeared on the bank statement
outstanding checks
declining balance method
basic - pro - premium
long term liabilities