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






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






3. Formula to calculate the depreciation for the year






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






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






6. Prepared by sole proprietors and partnerships






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






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






9. Signed by all partners in a partneship to establish rules about how the business is going to be run






10. 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






11. 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






12. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset






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






14. 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






15. Account maintained for small purchases






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






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






18. Formula to calculate the net book value






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






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






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






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






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






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






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






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






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






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






29. You only have to enter business data once






30. 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






31. Oversees the management of the company/corporation






32. Are not intended for resale






33. 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






34. One is maintained for all classes of capital assets






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






36. 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






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






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






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






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






41. A business that is owned by a single individual






42. All daily transactions are entered through these






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






44. 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






45. 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






46. A legal document giving official permission to do something






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






48. 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






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






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