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Test your basic knowledge |
Bookkeeping Advanced Vocab
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Study First
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. Also know as the net book value
cash receipts and cash disbursements journals
income tax expenses - income tax payable
cash disbursements journal
net value
2. This business purchases products from its vendors for resale to its customers
Income Summary - revenue - expense - capital
merchandising business
trademarks
patents
3. The process of recording the transactions and financial activities of a business
net income
bookkeeping
common share accounts - preferred share accounts
express or custom
4. Shows how much income has been earned b the business during the time period
income statement
capital assets
straight line depreciation
business number
5. Includes all debt that is due in more than one year
capital account
income after taxes
sole proprietorship
long term liabilities
6. A business that is owned by a single individual
statement of owners equity
accounts payable ledger
Shareholders equity
sole proprietorship
7. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
Accounts Receivable Ledger
Shareholders equity
partnership
amortization
8. Account used to record the net income that is retained in the business at the end of the year
retained earnings account
cash receipts journal
balance sheet
straight line depreciation
9. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
raw material inventory
Accounts Receivable Ledger
corporation
partnership
10. Account is reduced by the value of dividends paid to the shareholder
current assets
corporation
retained earnings account
accumulated depreciation account
11. When you proceed to reconcile your bank account you will use these two things
cash receipts and cash disbursements journals
integrated
intangible capital assets
accounts receivable
12. A partnership has a separate __________ and ____________ account for each partner
capital and drawings account
Cost of Goods Sold
depreciation = net book value * %
service business
13. Information from the purchase invoice is recorded In what journal
management
retained earnings account
income before taxes
purchase journal
14. Information from the sales invoice is recorded In what journal
outstanding deposits
Cost of Goods Sold
Cost of Goods Sold
sales journal
15. Listed on the balance sheet are assets that can be turned into cash within one year
current assets
trademarks
accounts receivable ledger
cash receipts journal
16. Deposits that have not yet been deposited in the bank account
capital assets
depreciation
work in process inventory
outstanding deposits
17. A record of a purchase made by a company - showing the terms and conditions for payment
modules
declining balance method
purchase invoice
drawings - capital - Income Summary - capital
18. Includes the costs of all goods that are complete and ready for sale
current liabilities
outstanding deposits
finished goods inventory
capital and drawings account
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
modules
service business
trademarks
Sales
20. What account is on the cash receipts and sales journals
partnership
long term liabilities
accounts receivable
cash receipts and cash disbursements journals
21. Must be held for use in the production of goods and/or services
depreciation expense account
reconciling the petty cash account
capital assets
accounts receivable ledger
22. 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
retained earnings account
capital assets
Accounts Receivable Ledger
service business
23. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
capital assets
income tax expenses - income tax payable
partnership
retained earnings account
24. One is maintained for all classes of capital assets
depreciation expense account
purchase journal
cash disbursements journal
service company
25. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
patents
raw material inventory
straight line depreciation
petty cash record
26. A business owned by one or more individuals who are known as shareholders
gross margin
Accounts Payable Ledger
petty cash account
corporation
27. Documents issued by companies as evidence of transactions made
accounts receivable ledger
current assets
accounts payable ledger
invoices
28. What is used to reference a company's Canadian GST and HST
capital assets
modules
business number
sales journal
29. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
accounts receivable ledger
general ledger trial balance
partnership agreement
purchase journal
30. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
retained earnings account
capital assets
service business
Accounts Payable Ledger
31. Has an indefinate life span and is not considered to reduce in value over time
service business
Accounts Payable Ledger
management
land
32. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
capital account
net income
depreciation
accounts payable and accrued expenses
33. A separate one is maintained for each class of capital assets
non-operating income
cash disbursements journal
licenses
accumulated depreciation account
34. Oversees the management of the company/corporation
earnings before interest and taxes
board of directors
depreciation = net book value * %
income after taxes
35. Represents the expected value of the asset at the end of its useful life to the business
current assets
reconciling the petty cash account
Accounts Receivable Ledger
residual value
36. Lists all vendors to whom your company has purchases
long term liabilities
Accounts Payable Ledger
capital assets
capital assets
37. What account is on the purchases and cash disbursements journals
income after taxes
purchase journal
accounts receivable ledger
Accounts payable
38. Owner of a business owned by a single individual
proprietor
accounts receivable
land
intangible capital assets
39. Account maintained for small purchases
accounts payable and accrued expenses
purchase invoice
petty cash account
retained earnings account
40. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
cash disbursements journal
finished goods inventory
declining balance method
capital assets
41. All the checks that have not appeared on the bank statement
net book value = original cost of asset - accumulated depreciation`
outstanding checks
invoices
partnership
42. Used to write off the cost of an intangible capital asset
corporation
amortization
capital assets
petty cash record
43. The process of comparing the cash plus receipts to the original balance int he account
non-operating income
reconciling the petty cash account
raw material inventory
management
44. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
capital assets
cash disbursements journal
Share capital accounts - retained earnings
income statement
45. 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
goodwill
(cost of capital asset - residual value) / (expected useful life of capital asset)
trademarks
outstanding deposits
46. Two types of share capital accounts
sales journal
common share accounts - preferred share accounts
service business
statement of owners equity
47. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
cash receipts and cash disbursements journals
capital account
land
depreciation expense account
48. Companies that transform raw materials into finished goods for sale
manufacturing organizations
management
capital account
net value
49. All daily transactions are entered through these
modules
purchase journal
net book value = original cost of asset - accumulated depreciation`
partnership
50. A legal document giving official permission to do something
net book value
licenses
capital assets
outstanding checks