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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. A number of owners join together and create one business in which they each own an agreed upon percentage






2. Documents issued by companies as evidence of transactions made






3. 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






4. Shows how much income has been earned b the business during the time period






5. First part of the income statement






6. 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






7. In a corporations books - the equity section is referred to as _________ ________






8. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______






9. 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.






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






11. Owner of a business owned by a single individual






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






13. 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






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






15. 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






16. A business that offers services to the public






17. Represents the expected value of the asset at the end of its useful life to the business






18. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory






19. All the checks that have not appeared on the bank statement






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






21. 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






22. 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






23. The process of recording the transactions and financial activities of a business






24. Two types of share capital accounts






25. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________






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






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






28. Companies that transform raw materials into finished goods for sale






29. Account used to record the net income that is retained in the business at the end of the year






30. When you proceed to reconcile your bank account you will use these two things






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






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






33. What are the three versions of simply accounting






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






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






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






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






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






39. 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






40. Prepared by sole proprietors and partnerships






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






42. 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






43. A business owned by one or more individuals who are known as shareholders






44. Net income is also known as this on an income statement






45. One is maintained for all classes of capital assets






46. Used to write off the cost of an intangible capital asset






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






48. Taxes are deducted from the income before taxes total on an income statement to come up with this total...






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






50. The ledgers are linked to the general ledger by this process