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






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






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






4. 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






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






6. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers






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






8. 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






9. One is maintained for all classes of capital assets






10. Also know as the net book value






11. 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






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






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






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






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






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






17. The ledgers are linked to the general ledger by this process






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






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






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






21. 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






22. 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






23. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset






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






25. What is the formula for calculating straight-line depreciation






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






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






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






29. Documents issued by companies as evidence of transactions made






30. What are the three versions of simply accounting






31. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin






32. Owner of a business owned by a single individual






33. Calculated by subtracting sales from the cogs






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






35. Lists all vendors to whom your company has purchases






36. This business does not have a purchase account and no inventory is recorded on the balance sheet






37. A legal document giving official permission to do something






38. Prepared by sole proprietors and partnerships






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






40. The two start up methods on simply accountin through the set up wizard






41. You only have to enter business data once






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






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






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






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






46. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention






47. Are not intended for resale






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






49. A business that is owned by a single individual






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