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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 purchases and cash disbursements journals






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






3. Calculated by subtracting sales from the cogs






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






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






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






7. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset






8. What is used to reference a company's Canadian GST and HST






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






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






11. A business that is owned by a single individual






12. A separate one is maintained for each class of capital assets






13. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






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






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






17. 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






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






19. 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






20. 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






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






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






23. Assets that have no physical form - but have value and are an integral part of the cost of doing business






24. All daily transactions are entered through these






25. You only have to enter business data once






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






27. Prepared by sole proprietors and partnerships






28. 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






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






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






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






32. 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






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






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






35. What are the three versions of simply accounting






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






37. Two types of share capital accounts






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






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






40. Are not intended for resale






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






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






43. Formula to calculate the depreciation for the year






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






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






46. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset






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






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






49. A legal document giving official permission to do something






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