Test your basic knowledge |

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. Who makes the decision on the amount to keep in the petty cash account






2. Formula to calculate the net book value






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






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






5. Oversees the management of the company/corporation






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






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






8. 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.






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. 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






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






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






13. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing






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






15. 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






16. Account maintained for small purchases






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






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






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






20. What are the three versions of simply accounting






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






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






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






24. The two start up methods on simply accountin through the set up wizard






25. Listed on the balance sheet are assets that can be turned into cash within one year






26. First part of the income statement






27. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax






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






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






30. Includes the costs of all goods that are complete and ready for sale






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






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






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






34. Account is reduced by the value of dividends paid to the shareholder






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






36. What account is on the cash receipts and sales journals






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






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






39. Owner of a business owned by a single individual






40. 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






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






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






43. A legal document giving official permission to do something






44. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years






45. A business that offers services to the public






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






47. 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






48. Calculated by subtracting sales from the cogs






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






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