Test your basic knowledge |

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






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






3. You only have to enter business data once






4. 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






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






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






7. One is maintained for all classes of capital assets






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






9. 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






10. Prepared by sole proprietors and partnerships






11. 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






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






13. A partnership has a separate __________ and ____________ account for each partner






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






15. Two types of share capital accounts






16. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention






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






18. A business that offers services to the public






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






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






21. Account maintained for small purchases






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






23. 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






24. Also know as the net book value






25. Shareholders equity contains two different types of accounts.... What are they






26. Formula to calculate the net book value






27. 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






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






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






30. Calculated by subtracting sales from the cogs






31. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc






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






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






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






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






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






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






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






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






40. A legal document giving official permission to do something






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






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






43. 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






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






45. Includes the costs of all products being made by a company that are not yet complete and ready to sell. This may include labor and overhead that have been invested in their production to date.






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






47. All daily transactions are entered through these






48. Lists all vendors to whom your company has purchases






49. 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






50. What are the three versions of simply accounting