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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. What account is on the cash receipts and sales journals






2. When a merchandising business prepares its income statement it includes a section called.....






3. 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






4. As a rule these should always be recorded on the balance sheet at cost






5. 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






6. Formula to calculate the depreciation for the year






7. 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






8. 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






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






10. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc






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






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






13. Lists all vendors to whom your company has purchases






14. Account maintained for small purchases






15. This business purchases products from its vendors for resale to its customers






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






17. A business that is owned by a single individual






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






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






20. Formula to calculate the net book value






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






22. This business does not have a purchase account and no inventory is recorded on the balance sheet






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






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






25. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention






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






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






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






29. All daily transactions are entered through these






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






31. You only have to enter business data once






32. 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






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






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






35. Prepared by sole proprietors and partnerships






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






37. A list of all the disbursements made from your petty cash in the box with the receipts and the cash






38. Information from the purchase invoice is recorded In what journal






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






40. What is the formula for calculating straight-line depreciation






41. Also know as the net book value






42. Documents issued by companies as evidence of transactions made






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






44. What are the three versions of simply accounting






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






46. Includes all debt that is due in more than one year






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






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






49. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes






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