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Bookkeeping Advanced Vocab
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Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
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.
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. A number of owners join together and create one business in which they each own an agreed upon percentage
Sales
integration
partnership
common share accounts - preferred share accounts
2. Information from the purchase invoice is recorded In what journal
purchase journal
accounts receivable ledger
general ledger trial balance
income statement
3. 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
income tax expenses - income tax payable
general ledger trial balance
trademarks
land
4. 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
outstanding deposits
cash disbursements journal
capital assets
cash receipts journal
5. 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
income tax expenses - income tax payable
accounts receivable
accounts payable and accrued expenses
statement of retained earnings
6. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
bank reconciliation statement
patents
non-operating income
accounts receivable
7. Calculated by subtracting sales from the cogs
net book value = original cost of asset - accumulated depreciation`
basic - pro - premium
gross margin
daily
8. Shareholders equity contains two different types of accounts.... What are they
capital assets
Income Summary - revenue - expense - capital
Share capital accounts - retained earnings
service company
9. 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
business number
accounts payable ledger
capital account
common share accounts - preferred share accounts
10. A record of a purchase made by a company - showing the terms and conditions for payment
purchase invoice
land
Shareholders equity
common share accounts - preferred share accounts
11. 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
goodwill
basic - pro - premium
petty cash account
accounts payable ledger
12. What is used to reference a company's Canadian GST and HST
capital assets
Accounts Receivable Ledger
business number
outstanding checks
13. What are the three versions of simply accounting
gross margin
basic - pro - premium
cash disbursements journal
long term liabilities
14. The process of recording the transactions and financial activities of a business
net value
Income Summary - revenue - expense - capital
bookkeeping
Shareholders equity
15. Formula to calculate the net book value
residual value
earnings before interest and taxes
net book value = original cost of asset - accumulated depreciation`
trial balance
16. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
income tax expenses - income tax payable
goodwill
drawings - capital - Income Summary - capital
declining balance method
17. Calculated from adding the non operating expenses to the net income
depreciation = net book value * %
express or custom
capital and drawings account
income before taxes
18. A business that offers services to the public
accounts receivable ledger
depreciation expense account
service company
board of directors
19. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
depreciation = net book value * %
Share capital accounts - retained earnings
Cost of Goods Sold
licenses
20. Formula to calculate the depreciation for the year
land
depreciation = net book value * %
bookkeeping
accounts receivable ledger
21. Owner of a business owned by a single individual
proprietor
retained earnings account
Shareholders equity
finished goods inventory
22. One is maintained for all classes of capital assets
depreciation expense account
capital and drawings account
business number
service business
23. All daily transactions are entered through these
depreciation = net book value * %
modules
drawings account
integrated
24. You only have to enter business data once
Accounts Payable Ledger
reconciling the petty cash account
non-operating income
integrated
25. Deposits that have not yet been deposited in the bank account
capital and drawings account
Shareholders equity
outstanding deposits
partnership agreement
26. 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
income tax expenses - income tax payable
service business
general ledger trial balance
27. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
accounts receivable ledger trial balance
income after taxes
Accounts Receivable Ledger
Shareholders equity
28. Includes the costs of all products being made by a company that are not yet complete and ready to sell. This may include labor and overhead that have been invested in their production to date.
work in process inventory
declining balance method
cash receipts and cash disbursements journals
service company
29. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
invoices
accounts receivable ledger
declining balance method
petty cash account
30. Consist of physical assets and non-physical or intangible properties
land
net book value = original cost of asset - accumulated depreciation`
capital assets
Income Summary - revenue - expense - capital
31. When a merchandising business prepares its income statement it includes a section called.....
residual value
Cost of Goods Sold
balance sheet
land
32. Includes all debt that is due in more than one year
accounts payable and accrued expenses
accounts receivable ledger
long term liabilities
Share capital accounts - retained earnings
33. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
land
capital assets
sales journal
income tax expenses - income tax payable
34. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
Accounts Receivable Ledger
Accounts payable
Accounts Payable Ledger
capital assets
35. 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
merchandising business
invoices
capital assets
accounts receivable ledger trial balance
36. What account is on the purchases and cash disbursements journals
accounts receivable ledger trial balance
patents
bank reconciliation statement
Accounts payable
37. 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
depreciation expense account
proprietor
sole proprietorship
trial balance
38. As a rule these should always be recorded on the balance sheet at cost
declining balance method
capital assets
management
business number
39. The process of comparing the cash plus receipts to the original balance int he account
(cost of capital asset - residual value) / (expected useful life of capital asset)
reconciling the petty cash account
accumulated depreciation account
Sales
40. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
land
cash disbursements journal
express or custom
income after taxes
41. Account used to record the net income that is retained in the business at the end of the year
capital assets
retained earnings account
daily
outstanding deposits
42. Used to write off the cost of an intangible capital asset
net income
income statement
reconciling the petty cash account
amortization
43. This business does not have a purchase account and no inventory is recorded on the balance sheet
drawings account
service business
partnership agreement
land
44. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
sales journal
integrated
management
Accounts Receivable Ledger
45. This is reported after the net income on an income statement
drawings - capital - Income Summary - capital
non-operating income
Cost of Goods Sold
capital and drawings account
46. Documents issued by companies as evidence of transactions made
statement of owners equity
invoices
earnings before interest and taxes
basic - pro - premium
47. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
service business
cash receipts journal
business number
net book value
48. Account is reduced by the value of dividends paid to the shareholder
land
retained earnings account
integration
income before taxes
49. Two types of share capital accounts
capital assets
common share accounts - preferred share accounts
long term liabilities
income after taxes
50. 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
current liabilities
land
service business
board of directors
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