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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. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset






2. 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






3. Prepared by corporations - similar to a statement of owners equity






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






5. As a rule these should always be recorded on the balance sheet at cost






6. Information from the purchase invoice is recorded In what journal






7. Lists all vendors to whom your company has purchases






8. Owner of a business owned by a single individual






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






10. Represents the expected value of the asset at the end of its useful life to the business






11. A record of a purchase made by a company - showing the terms and conditions for payment






12. What are the three versions of simply accounting






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






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






15. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______






16. Must have a useful life of more than one year






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






18. Documents issued by companies as evidence of transactions made






19. A business that offers services to the public






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






21. Oversees the management of the company/corporation






22. Shareholders equity contains two different types of accounts.... What are they






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






24. 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






25. 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






26. The process of recording the transactions and financial activities of a business






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






28. You only have to enter business data once






29. Used to write off the cost of an intangible capital asset






30. 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






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






32. Deposits that have not yet been deposited in the bank account






33. First part of the income statement






34. Also know as the net book value






35. Lists all customers and their outstanding balances for non cash or on account sales made






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






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






38. A legal document giving official permission to do something






39. Prepared by sole proprietors and partnerships






40. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory






41. 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






42. All the checks that have not appeared on the bank statement






43. 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






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






45. A business owned by one or more individuals who are known as shareholders






46. Net income is also known as this on an income statement






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






48. What is used to reference a company's Canadian GST and HST






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. The process of comparing the cash plus receipts to the original balance int he account