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






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






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






4. 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






5. Owner of a business owned by a single individual






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






7. A business that offers services to the public






8. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers






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






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






11. Formula to calculate the depreciation for the year






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






14. Calculated by subtracting sales from the cogs






15. Companies that transform raw materials into finished goods for sale






16. 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






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






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






19. 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






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






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






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






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






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






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






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






27. 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






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






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






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






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






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






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






34. 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






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






36. One is maintained for all classes of capital assets






37. 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






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. Oversees the management of the company/corporation






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






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






42. A legal document giving official permission to do something






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






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






45. All daily transactions are entered through these






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






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






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






49. 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






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