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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. Also know as the net book value
net value
petty cash account
cash disbursements journal
raw material inventory
2. 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
outstanding deposits
work in process inventory
current assets
3. In a corporations books - the equity section is referred to as _________ ________
cash receipts journal
capital assets
Shareholders equity
business number
4. Consist of physical assets and non-physical or intangible properties
Cost of Goods Sold
capital assets
intangible capital assets
accounts payable and accrued expenses
5. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
licenses
Cost of Goods Sold
capital assets
income after taxes
6. Companies that transform raw materials into finished goods for sale
statement of retained earnings
retained earnings account
accounts payable ledger
manufacturing organizations
7. 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
management
Income Summary - revenue - expense - capital
integrated
Accounts Payable Ledger
8. A legal document giving official permission to do something
integration
licenses
income tax expenses - income tax payable
partnership
9. Includes the costs of all goods that are complete and ready for sale
Accounts Receivable Ledger
Cost of Goods Sold
finished goods inventory
capital assets
10. When you proceed to reconcile your bank account you will use these two things
cash receipts and cash disbursements journals
cash disbursements journal
outstanding deposits
accumulated depreciation account
11. The process of comparing the cash plus receipts to the original balance int he account
cash receipts and cash disbursements journals
reconciling the petty cash account
partnership
Cost of Goods Sold
12. A business that offers services to the public
depreciation
accounts payable ledger
Income Summary - revenue - expense - capital
service company
13. Owner of a business owned by a single individual
cash disbursements journal
proprietor
common share accounts - preferred share accounts
gross margin
14. Account used to record the net income that is retained in the business at the end of the year
retained earnings account
reconciling the petty cash account
Accounts Receivable Ledger
statement of retained earnings
15. Lists all vendors to whom your company has purchases
service company
capital assets
express or custom
Accounts Payable Ledger
16. Net income is also known as this on an income statement
petty cash record
retained earnings account
Accounts Receivable Ledger
earnings before interest and taxes
17. Formula to calculate the net book value
capital assets
net book value = original cost of asset - accumulated depreciation`
capital assets
invoices
18. All daily transactions are entered through these
accounts receivable ledger
income statement
capital assets
modules
19. Signed by all partners in a partneship to establish rules about how the business is going to be run
gross margin
merchandising business
partnership agreement
drawings account
20. All the checks that have not appeared on the bank statement
net book value = original cost of asset - accumulated depreciation`
outstanding checks
capital assets
Accounts payable
21. A business that is owned by a single individual
sole proprietorship
drawings - capital - Income Summary - capital
residual value
accounts payable ledger
22. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
invoices
non-operating income
petty cash record
Accounts Payable Ledger
23. 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
balance sheet
bank reconciliation statement
service company
outstanding deposits
24. How often are the accounts payable entries entered into the accounts payable ledger
depreciation = net book value * %
purchase journal
long term liabilities
daily
25. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
accounts receivable
net book value
cash receipts journal
outstanding deposits
26. Must have a useful life of more than one year
income before taxes
capital assets
Income Summary - revenue - expense - capital
Accounts payable
27. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
retained earnings account
outstanding deposits
depreciation
partnership agreement
28. Calculated from adding the non operating expenses to the net income
income before taxes
Accounts Receivable Ledger
finished goods inventory
work in process inventory
29. Formula to calculate the depreciation for the year
net book value
depreciation = net book value * %
accounts receivable ledger
bookkeeping
30. Information from the sales invoice is recorded In what journal
long term liabilities
cash receipts and cash disbursements journals
service business
sales journal
31. When a merchandising business prepares its income statement it includes a section called.....
trademarks
partnership
purchase invoice
Cost of Goods Sold
32. A record of a purchase made by a company - showing the terms and conditions for payment
(cost of capital asset - residual value) / (expected useful life of capital asset)
purchase invoice
Accounts Payable Ledger
capital assets
33. A business owned by one or more individuals who are known as shareholders
petty cash record
corporation
invoices
amortization
34. 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
non-operating income
bookkeeping
capital and drawings account
accounts payable and accrued expenses
35. What account is on the purchases and cash disbursements journals
declining balance method
Accounts payable
partnership
straight line depreciation
36. This business does not have a purchase account and no inventory is recorded on the balance sheet
service business
income tax expenses - income tax payable
capital assets
net value
37. Listed on the balance sheet are assets that can be turned into cash within one year
current assets
outstanding checks
land
declining balance method
38. The process of recording the transactions and financial activities of a business
amortization
straight line depreciation
corporation
bookkeeping
39. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
net income
petty cash record
manufacturing organizations
drawings account
40. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
non-operating income
drawings - capital - Income Summary - capital
depreciation
straight line depreciation
41. 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
land
net income
Cost of Goods Sold
sales journal
42. Amounts owed by the company that are due within one year of the balance sheet date
service business
business number
integrated
current liabilities
43. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
cash receipts and cash disbursements journals
express or custom
raw material inventory
outstanding checks
44. Prepared by sole proprietors and partnerships
drawings - capital - Income Summary - capital
modules
statement of owners equity
income after taxes
45. 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
income after taxes
outstanding deposits
drawings - capital - Income Summary - capital
land
46. What are the three versions of simply accounting
basic - pro - premium
income statement
cash disbursements journal
Accounts Payable Ledger
47. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
statement of owners equity
cash disbursements journal
income after taxes
Cost of Goods Sold
48. This business purchases products from its vendors for resale to its customers
merchandising business
current liabilities
accounts receivable ledger
Accounts Payable Ledger
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
drawings account
purchase journal
non-operating income
capital account
50. Must be held for use in the production of goods and/or services
capital assets
net value
(cost of capital asset - residual value) / (expected useful life of capital asset)
patents