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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. When a merchandising business prepares its income statement it includes a section called.....
corporation
partnership agreement
Cost of Goods Sold
board of directors
2. Calculated by subtracting sales from the cogs
Accounts Payable Ledger
gross margin
income tax expenses - income tax payable
accounts receivable ledger
3. Prepared by corporations - similar to a statement of owners equity
purchase journal
cash receipts and cash disbursements journals
statement of retained earnings
statement of owners equity
4. As a rule these should always be recorded on the balance sheet at cost
accounts receivable
capital assets
common share accounts - preferred share accounts
(cost of capital asset - residual value) / (expected useful life of capital asset)
5. 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
cash receipts journal
reconciling the petty cash account
outstanding deposits
Cost of Goods Sold
6. A business owned by one or more individuals who are known as shareholders
corporation
capital assets
accumulated depreciation account
finished goods inventory
7. 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
petty cash record
net book value = original cost of asset - accumulated depreciation`
net income
8. A partnership has a separate __________ and ____________ account for each partner
capital assets
capital and drawings account
drawings - capital - Income Summary - capital
corporation
9. What is the formula for calculating straight-line depreciation
accounts payable and accrued expenses
common share accounts - preferred share accounts
Accounts payable
(cost of capital asset - residual value) / (expected useful life of capital asset)
10. Has an indefinate life span and is not considered to reduce in value over time
land
licenses
depreciation
service business
11. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
income after taxes
work in process inventory
accounts payable and accrued expenses
outstanding deposits
12. All daily transactions are entered through these
daily
general ledger trial balance
Accounts Payable Ledger
modules
13. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
outstanding deposits
capital assets
patents
Accounts Payable Ledger
14. Includes all debt that is due in more than one year
finished goods inventory
petty cash record
long term liabilities
intangible capital assets
15. What account is on the purchases and cash disbursements journals
land
reconciling the petty cash account
intangible capital assets
Accounts payable
16. Signed by all partners in a partneship to establish rules about how the business is going to be run
partnership agreement
income statement
land
express or custom
17. Lists all customers and their outstanding balances for non cash or on account sales made
gross margin
Share capital accounts - retained earnings
balance sheet
accounts receivable ledger
18. Used to write off the cost of an intangible capital asset
trademarks
net income
current liabilities
amortization
19. 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
outstanding deposits
accounts payable and accrued expenses
purchase invoice
bank reconciliation statement
20. 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
trial balance
land
straight line depreciation
basic - pro - premium
21. Lists all vendors to whom your company has purchases
capital and drawings account
Income Summary - revenue - expense - capital
gross margin
Accounts Payable Ledger
22. One is maintained for all classes of capital assets
management
intangible capital assets
retained earnings account
depreciation expense account
23. Includes the costs of all goods that are complete and ready for sale
capital assets
residual value
finished goods inventory
accounts payable and accrued expenses
24. In a corporations books - the equity section is referred to as _________ ________
capital account
Shareholders equity
Cost of Goods Sold
Sales
25. What are the three versions of simply accounting
income before taxes
statement of owners equity
basic - pro - premium
daily
26. 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.
work in process inventory
partnership agreement
net value
Accounts Payable Ledger
27. First part of the income statement
net book value = original cost of asset - accumulated depreciation`
capital assets
Sales
Accounts Receivable Ledger
28. Calculated from adding the non operating expenses to the net income
reconciling the petty cash account
sole proprietorship
income after taxes
income before taxes
29. 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
Cost of Goods Sold
capital assets
service business
raw material inventory
30. A business that is owned by a single individual
capital assets
current liabilities
sole proprietorship
capital assets
31. Owner of a business owned by a single individual
outstanding checks
trademarks
proprietor
goodwill
32. 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
trademarks
express or custom
land
depreciation
33. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
capital assets
integration
cash receipts journal
raw material inventory
34. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
board of directors
net book value
straight line depreciation
capital assets
35. Two types of share capital accounts
Income Summary - revenue - expense - capital
cash receipts and cash disbursements journals
service business
common share accounts - preferred share accounts
36. The process of recording the transactions and financial activities of a business
bookkeeping
drawings account
balance sheet
accounts receivable ledger trial balance
37. A record of a purchase made by a company - showing the terms and conditions for payment
capital account
purchase invoice
finished goods inventory
sales journal
38. Listed on the balance sheet are assets that can be turned into cash within one year
partnership
income after taxes
current assets
intangible capital assets
39. 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
work in process inventory
capital assets
Accounts Payable Ledger
bank reconciliation statement
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
retained earnings account
daily
statement of retained earnings
41. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
Accounts Receivable Ledger
depreciation expense account
net income
non-operating income
42. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
current liabilities
depreciation expense account
capital assets
Income Summary - revenue - expense - capital
43. This is reported after the net income on an income statement
licenses
non-operating income
petty cash account
Accounts Payable Ledger
44. Information from the purchase invoice is recorded In what journal
integration
finished goods inventory
daily
purchase journal
45. Account maintained for small purchases
earnings before interest and taxes
accounts receivable ledger
petty cash account
bookkeeping
46. Who makes the decision on the amount to keep in the petty cash account
Accounts Payable Ledger
land
management
net book value
47. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
bank reconciliation statement
common share accounts - preferred share accounts
integrated
petty cash record
48. Account is reduced by the value of dividends paid to the shareholder
retained earnings account
outstanding checks
accounts payable ledger
sales journal
49. Companies that transform raw materials into finished goods for sale
capital assets
(cost of capital asset - residual value) / (expected useful life of capital asset)
manufacturing organizations
sole proprietorship
50. Must have a useful life of more than one year
capital assets
accounts receivable
petty cash record
depreciation = net book value * %