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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. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
corporation
service business
Sales
Accounts Receivable Ledger
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
statement of retained earnings
net book value
income tax expenses - income tax payable
3. Owner of a business owned by a single individual
Sales
proprietor
depreciation = net book value * %
depreciation
4. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
work in process inventory
general ledger trial balance
reconciling the petty cash account
outstanding checks
5. 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.
statement of retained earnings
bank reconciliation statement
work in process inventory
capital assets
6. When you proceed to reconcile your bank account you will use these two things
cash receipts and cash disbursements journals
integration
purchase invoice
income tax expenses - income tax payable
7. All the checks that have not appeared on the bank statement
service business
net value
income tax expenses - income tax payable
outstanding checks
8. Information from the sales invoice is recorded In what journal
sales journal
Accounts Payable Ledger
earnings before interest and taxes
capital assets
9. The ledgers are linked to the general ledger by this process
modules
Sales
capital assets
integration
10. Net income is also known as this on an income statement
management
purchase journal
accounts receivable ledger trial balance
earnings before interest and taxes
11. 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
outstanding checks
net value
partnership agreement
accounts payable ledger
12. What account is on the purchases and cash disbursements journals
land
Accounts payable
proprietor
management
13. A partnership has a separate __________ and ____________ account for each partner
capital and drawings account
cash receipts journal
manufacturing organizations
trial balance
14. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
accounts receivable ledger trial balance
management
depreciation
purchase invoice
15. Also know as the net book value
long term liabilities
Share capital accounts - retained earnings
manufacturing organizations
net value
16. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
integrated
(cost of capital asset - residual value) / (expected useful life of capital asset)
petty cash record
land
17. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
bookkeeping
trial balance
drawings account
invoices
18. What are the three versions of simply accounting
depreciation = net book value * %
basic - pro - premium
accounts receivable ledger
net book value = original cost of asset - accumulated depreciation`
19. 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
partnership agreement
net income
drawings - capital - Income Summary - capital
general ledger trial balance
20. As a rule these should always be recorded on the balance sheet at cost
depreciation expense account
capital assets
sole proprietorship
licenses
21. The process of recording the transactions and financial activities of a business
capital assets
proprietor
bookkeeping
drawings account
22. What account is on the cash receipts and sales journals
integrated
Sales
accounts receivable
straight line depreciation
23. Documents issued by companies as evidence of transactions made
service business
invoices
Sales
land
24. Signed by all partners in a partneship to establish rules about how the business is going to be run
partnership agreement
statement of owners equity
licenses
board of directors
25. In a corporations books - the equity section is referred to as _________ ________
Shareholders equity
partnership agreement
declining balance method
modules
26. Information from the purchase invoice is recorded In what journal
land
non-operating income
purchase journal
goodwill
27. Deposits that have not yet been deposited in the bank account
manufacturing organizations
accumulated depreciation account
capital assets
outstanding deposits
28. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
patents
merchandising business
accounts receivable ledger trial balance
non-operating income
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
Sales
management
accounts receivable ledger
residual value
30. Assets that have no physical form - but have value and are an integral part of the cost of doing business
Accounts Receivable Ledger
trademarks
accounts receivable ledger trial balance
intangible capital assets
31. Amounts owed by the company that are due within one year of the balance sheet date
accounts receivable
Cost of Goods Sold
service business
current liabilities
32. 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
daily
merchandising business
patents
service business
33. Calculated from adding the non operating expenses to the net income
trademarks
income before taxes
trial balance
outstanding deposits
34. 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
invoices
trial balance
Share capital accounts - retained earnings
trademarks
35. Must have a useful life of more than one year
Share capital accounts - retained earnings
merchandising business
drawings account
capital assets
36. 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
land
retained earnings account
Income Summary - revenue - expense - capital
manufacturing organizations
37. A record of a purchase made by a company - showing the terms and conditions for payment
accounts receivable ledger
integration
capital assets
purchase invoice
38. Shows how much income has been earned b the business during the time period
Share capital accounts - retained earnings
income statement
partnership
depreciation expense account
39. You only have to enter business data once
accounts receivable
integrated
basic - pro - premium
manufacturing organizations
40. Must be held for use in the production of goods and/or services
capital assets
goodwill
depreciation expense account
bank reconciliation statement
41. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
net book value
work in process inventory
current assets
amortization
42. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
reconciling the petty cash account
income tax expenses - income tax payable
cash receipts and cash disbursements journals
merchandising business
43. Two types of share capital accounts
common share accounts - preferred share accounts
land
income tax expenses - income tax payable
partnership
44. Lists all customers and their outstanding balances for non cash or on account sales made
accounts receivable ledger
land
trademarks
sole proprietorship
45. Are not intended for resale
partnership
income after taxes
capital assets
Accounts payable
46. A legal document giving official permission to do something
licenses
daily
earnings before interest and taxes
express or custom
47. 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
manufacturing organizations
trial balance
outstanding deposits
Cost of Goods Sold
48. Has an indefinate life span and is not considered to reduce in value over time
invoices
purchase journal
land
net value
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
accounts payable ledger
capital assets
capital account
bookkeeping
50. Includes all debt that is due in more than one year
straight line depreciation
long term liabilities
accounts receivable ledger
non-operating income