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






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






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






4. First part of the income statement






5. 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






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






7. Oversees the management of the company/corporation






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






9. 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






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






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






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






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






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






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






16. What are the three versions of simply accounting






17. 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






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






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






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






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






22. All daily transactions are entered through these






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






26. 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






27. Owner of a business owned by a single individual






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






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






30. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes






31. Prepared by sole proprietors and partnerships






32. A legal document giving official permission to do something






33. A partnership has a separate __________ and ____________ account for each partner






34. You only have to enter business data once






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






36. Has an indefinate life span and is not considered to reduce in value over time






37. What account is on the purchases and cash disbursements journals






38. Signed by all partners in a partneship to establish rules about how the business is going to be run






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






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






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






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






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






44. Formula to calculate the depreciation for the year






45. 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






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






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






48. Two types of share capital accounts






49. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc






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