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Test your basic knowledge |
Bookkeeping Advanced Vocab
Start Test
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. Account used to record the net income that is retained in the business at the end of the year
service business
current assets
retained earnings account
merchandising business
2. Oversees the management of the company/corporation
statement of retained earnings
outstanding checks
sales journal
board of directors
3. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
Accounts Receivable Ledger
non-operating income
management
net income
4. This business does not have a purchase account and no inventory is recorded on the balance sheet
capital account
service business
service company
amortization
5. 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
trial balance
outstanding checks
accumulated depreciation account
Accounts Receivable Ledger
6. What account is on the cash receipts and sales journals
work in process inventory
accounts receivable
Shareholders equity
land
7. All the checks that have not appeared on the bank statement
accounts payable ledger
income before taxes
outstanding checks
long term liabilities
8. Listed on the balance sheet are assets that can be turned into cash within one year
accounts receivable
manufacturing organizations
current assets
drawings - capital - Income Summary - capital
9. 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
depreciation = net book value * %
land
earnings before interest and taxes
long term liabilities
10. Used to write off the cost of an intangible capital asset
cash receipts and cash disbursements journals
cash disbursements journal
accounts receivable ledger trial balance
amortization
11. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
invoices
drawings account
Accounts Payable Ledger
gross margin
12. Includes all debt that is due in more than one year
income after taxes
long term liabilities
earnings before interest and taxes
modules
13. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
income tax expenses - income tax payable
Accounts payable
capital assets
residual value
14. This business purchases products from its vendors for resale to its customers
work in process inventory
merchandising business
net book value
income before taxes
15. Lists all customers and their outstanding balances for non cash or on account sales made
partnership
accounts receivable ledger
income before taxes
trademarks
16. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
management
partnership
Shareholders equity
Accounts Receivable Ledger
17. Must be held for use in the production of goods and/or services
gross margin
capital assets
service business
net book value
18. Must have a useful life of more than one year
sales journal
straight line depreciation
sole proprietorship
capital assets
19. This is reported after the net income on an income statement
service business
trial balance
non-operating income
sales journal
20. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
long term liabilities
work in process inventory
cash disbursements journal
capital assets
21. One is maintained for all classes of capital assets
board of directors
depreciation expense account
corporation
invoices
22. The two start up methods on simply accountin through the set up wizard
capital assets
income after taxes
manufacturing organizations
express or custom
23. When you proceed to reconcile your bank account you will use these two things
capital and drawings account
reconciling the petty cash account
cash receipts and cash disbursements journals
integration
24. As a rule these should always be recorded on the balance sheet at cost
retained earnings account
net income
capital assets
patents
25. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
income before taxes
capital assets
raw material inventory
general ledger trial balance
26. Who makes the decision on the amount to keep in the petty cash account
gross margin
management
trial balance
daily
27. A separate one is maintained for each class of capital assets
gross margin
accumulated depreciation account
net value
business number
28. Represents the assets on hand - the liabilities owed and the owners equity
daily
balance sheet
cash receipts and cash disbursements journals
integration
29. Shows how much income has been earned b the business during the time period
purchase journal
cash receipts journal
long term liabilities
income statement
30. Lists all vendors to whom your company has purchases
land
management
Accounts Payable Ledger
depreciation
31. Calculated by subtracting sales from the cogs
land
gross margin
patents
accumulated depreciation account
32. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
declining balance method
integrated
balance sheet
accounts receivable ledger trial balance
33. 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
straight line depreciation
intangible capital assets
accounts payable ledger
Income Summary - revenue - expense - capital
34. A business that is owned by a single individual
sole proprietorship
petty cash record
income after taxes
bookkeeping
35. Shareholders equity contains two different types of accounts.... What are they
petty cash record
petty cash account
Share capital accounts - retained earnings
Shareholders equity
36. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
bank reconciliation statement
accounts receivable ledger
outstanding deposits
drawings - capital - Income Summary - capital
37. Are not intended for resale
Shareholders equity
Accounts Payable Ledger
capital assets
sales journal
38. A number of owners join together and create one business in which they each own an agreed upon percentage
reconciling the petty cash account
partnership
partnership agreement
(cost of capital asset - residual value) / (expected useful life of capital asset)
39. Signed by all partners in a partneship to establish rules about how the business is going to be run
cash receipts journal
accounts receivable
partnership agreement
petty cash record
40. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
land
petty cash record
work in process inventory
partnership agreement
41. Prepared by sole proprietors and partnerships
bank reconciliation statement
statement of owners equity
retained earnings account
express or custom
42. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
drawings account
capital assets
income statement
depreciation
43. What account is on the purchases and cash disbursements journals
capital assets
Accounts payable
land
cash receipts and cash disbursements journals
44. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
current liabilities
outstanding deposits
Cost of Goods Sold
proprietor
45. Account maintained for small purchases
accumulated depreciation account
statement of retained earnings
petty cash account
general ledger trial balance
46. What is the formula for calculating straight-line depreciation
(cost of capital asset - residual value) / (expected useful life of capital asset)
outstanding checks
goodwill
daily
47. Calculated from adding the non operating expenses to the net income
capital assets
income statement
income before taxes
non-operating income
48. Owner of a business owned by a single individual
proprietor
net value
income statement
service business
49. 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
land
bank reconciliation statement
Sales
declining balance method
50. Net income is also known as this on an income statement
partnership agreement
Accounts payable
earnings before interest and taxes
outstanding checks