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Test your basic knowledge |
Bookkeeping Advanced Vocab
Start Test
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. Has an indefinate life span and is not considered to reduce in value over time
invoices
land
accounts receivable ledger trial balance
Income Summary - revenue - expense - capital
2. Must have a useful life of more than one year
corporation
bank reconciliation statement
trial balance
capital assets
3. 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
capital assets
purchase journal
trial balance
capital and drawings account
4. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
Sales
Cost of Goods Sold
raw material inventory
capital assets
5. The two start up methods on simply accountin through the set up wizard
Cost of Goods Sold
accounts payable ledger
express or custom
depreciation expense account
6. Deposits that have not yet been deposited in the bank account
Accounts Payable Ledger
accounts receivable ledger trial balance
outstanding deposits
daily
7. Prepared by corporations - similar to a statement of owners equity
merchandising business
net value
statement of retained earnings
land
8. Amounts owed by the company that are due within one year of the balance sheet date
earnings before interest and taxes
partnership agreement
current liabilities
current assets
9. A partnership has a separate __________ and ____________ account for each partner
income before taxes
service business
capital and drawings account
net value
10. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
Accounts Receivable Ledger
residual value
daily
trial balance
11. When you proceed to reconcile your bank account you will use these two things
accounts receivable ledger
cash receipts and cash disbursements journals
residual value
manufacturing organizations
12. Oversees the management of the company/corporation
board of directors
manufacturing organizations
capital account
proprietor
13. 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
depreciation = net book value * %
raw material inventory
service business
accounts payable ledger
14. 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
accounts receivable ledger
accumulated depreciation account
capital account
15. How often are the accounts payable entries entered into the accounts payable ledger
trial balance
Accounts Receivable Ledger
daily
intangible capital assets
16. Assets that have no physical form - but have value and are an integral part of the cost of doing business
intangible capital assets
daily
capital assets
drawings - capital - Income Summary - capital
17. What account is on the cash receipts and sales journals
depreciation
Cost of Goods Sold
accounts payable ledger
accounts receivable
18. Must be held for use in the production of goods and/or services
land
intangible capital assets
Share capital accounts - retained earnings
capital assets
19. 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
net book value = original cost of asset - accumulated depreciation`
accounts payable ledger
Accounts Payable Ledger
land
20. 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
cash receipts journal
basic - pro - premium
accounts receivable ledger trial balance
trial balance
21. Calculated from adding the non operating expenses to the net income
income before taxes
service company
Accounts payable
(cost of capital asset - residual value) / (expected useful life of capital asset)
22. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
statement of owners equity
daily
integrated
net income
23. What are the three versions of simply accounting
Sales
bookkeeping
basic - pro - premium
general ledger trial balance
24. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
trademarks
accounts receivable ledger
amortization
balance sheet
25. Documents issued by companies as evidence of transactions made
straight line depreciation
purchase journal
invoices
Income Summary - revenue - expense - capital
26. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
licenses
straight line depreciation
management
modules
27. Net income is also known as this on an income statement
earnings before interest and taxes
Accounts Receivable Ledger
raw material inventory
purchase invoice
28. Used to write off the cost of an intangible capital asset
declining balance method
goodwill
amortization
outstanding deposits
29. Account is reduced by the value of dividends paid to the shareholder
land
income after taxes
capital and drawings account
retained earnings account
30. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
capital assets
income after taxes
Income Summary - revenue - expense - capital
bookkeeping
31. In a corporations books - the equity section is referred to as _________ ________
Shareholders equity
capital account
gross margin
general ledger trial balance
32. Represents the expected value of the asset at the end of its useful life to the business
residual value
balance sheet
cash disbursements journal
capital account
33. Signed by all partners in a partneship to establish rules about how the business is going to be run
accounts payable and accrued expenses
partnership agreement
Accounts Payable Ledger
statement of retained earnings
34. 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
retained earnings account
basic - pro - premium
patents
drawings - capital - Income Summary - capital
35. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
income statement
drawings account
goodwill
depreciation
36. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
sole proprietorship
general ledger trial balance
basic - pro - premium
statement of retained earnings
37. You only have to enter business data once
integrated
depreciation
income tax expenses - income tax payable
cash receipts and cash disbursements journals
38. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
earnings before interest and taxes
declining balance method
work in process inventory
amortization
39. A legal document giving official permission to do something
accounts receivable ledger
net income
licenses
integrated
40. What is the formula for calculating straight-line depreciation
statement of owners equity
Cost of Goods Sold
bank reconciliation statement
(cost of capital asset - residual value) / (expected useful life of capital asset)
41. 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
trademarks
invoices
residual value
net income
42. The process of recording the transactions and financial activities of a business
depreciation
bookkeeping
capital and drawings account
non-operating income
43. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
land
purchase journal
petty cash record
Accounts Receivable Ledger
44. Owner of a business owned by a single individual
integrated
accounts payable ledger
proprietor
basic - pro - premium
45. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
drawings account
petty cash record
service business
Accounts Receivable Ledger
46. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
cash receipts journal
business number
Accounts Payable Ledger
Cost of Goods Sold
47. A separate one is maintained for each class of capital assets
work in process inventory
income after taxes
accumulated depreciation account
retained earnings account
48. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
daily
manufacturing organizations
Accounts Payable Ledger
accounts receivable ledger
49. 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
net book value
raw material inventory
bank reconciliation statement
land
50. First part of the income statement
common share accounts - preferred share accounts
partnership agreement
drawings account
Sales