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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 account is on the purchases and cash disbursements journals
bookkeeping
Accounts payable
income after taxes
(cost of capital asset - residual value) / (expected useful life of capital asset)
2. Must have a useful life of more than one year
capital assets
raw material inventory
accounts receivable ledger
purchase invoice
3. Calculated by subtracting sales from the cogs
partnership
Shareholders equity
gross margin
capital assets
4. Who makes the decision on the amount to keep in the petty cash account
capital assets
goodwill
management
sole proprietorship
5. The process of recording the transactions and financial activities of a business
bookkeeping
accounts payable and accrued expenses
service company
petty cash account
6. Calculated from adding the non operating expenses to the net income
income before taxes
amortization
gross margin
depreciation = net book value * %
7. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
outstanding deposits
net income
cash receipts journal
straight line depreciation
8. What is used to reference a company's Canadian GST and HST
business number
patents
land
finished goods inventory
9. Used to write off the cost of an intangible capital asset
amortization
accounts receivable
trademarks
board of directors
10. What is the formula for calculating straight-line depreciation
drawings - capital - Income Summary - capital
capital and drawings account
(cost of capital asset - residual value) / (expected useful life of capital asset)
business number
11. A business that is owned by a single individual
business number
land
sole proprietorship
cash receipts journal
12. A separate one is maintained for each class of capital assets
finished goods inventory
gross margin
accumulated depreciation account
statement of retained earnings
13. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
express or custom
work in process inventory
drawings account
purchase journal
14. This is reported after the net income on an income statement
cash disbursements journal
non-operating income
bank reconciliation statement
capital assets
15. Deposits that have not yet been deposited in the bank account
purchase invoice
gross margin
petty cash account
outstanding deposits
16. When a merchandising business prepares its income statement it includes a section called.....
Accounts Receivable Ledger
current liabilities
Cost of Goods Sold
proprietor
17. 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
trial balance
depreciation
goodwill
partnership agreement
18. Includes all debt that is due in more than one year
long term liabilities
drawings - capital - Income Summary - capital
net value
accounts receivable ledger trial balance
19. 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
net income
trademarks
capital assets
depreciation
20. 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
service business
raw material inventory
accounts payable ledger
outstanding checks
21. A number of owners join together and create one business in which they each own an agreed upon percentage
accounts receivable ledger
capital assets
partnership
outstanding deposits
22. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
cash disbursements journal
Accounts payable
residual value
daily
23. Assets that have no physical form - but have value and are an integral part of the cost of doing business
intangible capital assets
current liabilities
current assets
income statement
24. All daily transactions are entered through these
integration
accounts receivable ledger
modules
straight line depreciation
25. You only have to enter business data once
integrated
intangible capital assets
sales journal
Accounts Receivable Ledger
26. Must be held for use in the production of goods and/or services
capital assets
cash disbursements journal
trademarks
purchase journal
27. Prepared by sole proprietors and partnerships
capital assets
business number
statement of owners equity
sole proprietorship
28. 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
merchandising business
land
service business
capital assets
29. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
Shareholders equity
long term liabilities
petty cash record
income statement
30. Has an indefinate life span and is not considered to reduce in value over time
Sales
land
manufacturing organizations
capital assets
31. In a corporations books - the equity section is referred to as _________ ________
Shareholders equity
purchase invoice
net book value = original cost of asset - accumulated depreciation`
raw material inventory
32. 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
finished goods inventory
accounts receivable ledger trial balance
land
(cost of capital asset - residual value) / (expected useful life of capital asset)
33. Listed on the balance sheet are assets that can be turned into cash within one year
accumulated depreciation account
cash receipts journal
current assets
service business
34. Shows how much income has been earned b the business during the time period
income statement
petty cash record
Shareholders equity
corporation
35. What are the three versions of simply accounting
net book value = original cost of asset - accumulated depreciation`
purchase journal
long term liabilities
basic - pro - premium
36. Includes the costs of all goods that are complete and ready for sale
finished goods inventory
cash receipts and cash disbursements journals
depreciation = net book value * %
licenses
37. Two types of share capital accounts
integrated
common share accounts - preferred share accounts
express or custom
capital assets
38. Represents the expected value of the asset at the end of its useful life to the business
long term liabilities
residual value
drawings - capital - Income Summary - capital
cash disbursements journal
39. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
cash receipts journal
finished goods inventory
declining balance method
capital assets
40. Are not intended for resale
capital assets
intangible capital assets
patents
accounts receivable
41. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
licenses
Accounts Receivable Ledger
residual value
business number
42. The ledgers are linked to the general ledger by this process
income statement
integration
partnership
Cost of Goods Sold
43. Formula to calculate the depreciation for the year
depreciation = net book value * %
outstanding checks
cash disbursements journal
licenses
44. How often are the accounts payable entries entered into the accounts payable ledger
common share accounts - preferred share accounts
daily
net book value = original cost of asset - accumulated depreciation`
current liabilities
45. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
Accounts Payable Ledger
goodwill
sales journal
amortization
46. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
accounts payable and accrued expenses
capital assets
net income
net book value
47. Consist of physical assets and non-physical or intangible properties
accounts receivable ledger
accounts payable ledger
capital and drawings account
capital assets
48. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
patents
balance sheet
land
capital account
49. A legal document giving official permission to do something
depreciation expense account
intangible capital assets
Accounts Receivable Ledger
licenses
50. This business does not have a purchase account and no inventory is recorded on the balance sheet
current liabilities
Income Summary - revenue - expense - capital
service business
capital assets