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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. 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.
work in process inventory
capital and drawings account
licenses
income statement
2. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
integrated
Accounts payable
service business
net income
3. Lists all vendors to whom your company has purchases
accounts receivable ledger
Accounts Payable Ledger
capital assets
daily
4. What account is on the cash receipts and sales journals
accounts receivable
income statement
non-operating income
income after taxes
5. A number of owners join together and create one business in which they each own an agreed upon percentage
partnership
capital assets
cash receipts journal
accounts receivable ledger
6. The ledgers are linked to the general ledger by this process
integration
gross margin
residual value
trial balance
7. Prepared by sole proprietors and partnerships
integrated
capital account
statement of owners equity
bank reconciliation statement
8. Two types of share capital accounts
common share accounts - preferred share accounts
net book value = original cost of asset - accumulated depreciation`
service business
accounts receivable
9. 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
sole proprietorship
trademarks
service company
goodwill
10. Lists all customers and their outstanding balances for non cash or on account sales made
Accounts Payable Ledger
accounts receivable ledger
common share accounts - preferred share accounts
current assets
11. Prepared by corporations - similar to a statement of owners equity
Share capital accounts - retained earnings
statement of retained earnings
service company
Accounts Payable Ledger
12. This is reported after the net income on an income statement
non-operating income
residual value
manufacturing organizations
accounts receivable ledger
13. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
depreciation expense account
service business
straight line depreciation
current assets
14. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
Sales
raw material inventory
petty cash record
cash disbursements journal
15. Shows how much income has been earned b the business during the time period
income statement
long term liabilities
net book value
modules
16. As a rule these should always be recorded on the balance sheet at cost
capital assets
express or custom
outstanding deposits
accounts receivable ledger trial balance
17. Signed by all partners in a partneship to establish rules about how the business is going to be run
retained earnings account
partnership agreement
capital assets
current assets
18. 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
current liabilities
bank reconciliation statement
depreciation expense account
Accounts payable
19. Listed on the balance sheet are assets that can be turned into cash within one year
cash receipts and cash disbursements journals
capital assets
capital assets
current assets
20. 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
accounts payable ledger
statement of retained earnings
accounts receivable ledger
service business
21. 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
land
cash receipts and cash disbursements journals
residual value
trademarks
22. Must have a useful life of more than one year
trial balance
earnings before interest and taxes
Cost of Goods Sold
capital assets
23. Account is reduced by the value of dividends paid to the shareholder
retained earnings account
invoices
management
net income
24. What is the formula for calculating straight-line depreciation
(cost of capital asset - residual value) / (expected useful life of capital asset)
accounts receivable ledger
net value
capital assets
25. Calculated from adding the non operating expenses to the net income
statement of retained earnings
drawings account
capital and drawings account
income before taxes
26. Formula to calculate the depreciation for the year
depreciation = net book value * %
capital assets
non-operating income
daily
27. Must be held for use in the production of goods and/or services
long term liabilities
finished goods inventory
capital assets
purchase invoice
28. A business that is owned by a single individual
partnership agreement
amortization
sole proprietorship
net book value = original cost of asset - accumulated depreciation`
29. This business purchases products from its vendors for resale to its customers
accounts receivable ledger trial balance
balance sheet
sole proprietorship
merchandising business
30. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
petty cash record
Cost of Goods Sold
capital assets
(cost of capital asset - residual value) / (expected useful life of capital asset)
31. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
goodwill
cash disbursements journal
net book value = original cost of asset - accumulated depreciation`
Accounts payable
32. Shareholders equity contains two different types of accounts.... What are they
(cost of capital asset - residual value) / (expected useful life of capital asset)
management
capital assets
Share capital accounts - retained earnings
33. 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
accumulated depreciation account
accounts receivable ledger trial balance
retained earnings account
non-operating income
34. This business does not have a purchase account and no inventory is recorded on the balance sheet
capital account
service business
work in process inventory
bank reconciliation statement
35. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
modules
drawings account
capital assets
work in process inventory
36. A legal document giving official permission to do something
capital assets
capital account
petty cash record
licenses
37. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
capital assets
depreciation expense account
trial balance
net book value
38. Companies that transform raw materials into finished goods for sale
manufacturing organizations
accumulated depreciation account
outstanding deposits
finished goods inventory
39. Oversees the management of the company/corporation
board of directors
residual value
drawings account
cash receipts and cash disbursements journals
40. Information from the purchase invoice is recorded In what journal
purchase journal
patents
long term liabilities
capital account
41. Owner of a business owned by a single individual
income after taxes
proprietor
Cost of Goods Sold
balance sheet
42. Are not intended for resale
capital assets
drawings - capital - Income Summary - capital
Accounts Payable Ledger
declining balance method
43. A partnership has a separate __________ and ____________ account for each partner
daily
income statement
capital and drawings account
cash receipts and cash disbursements journals
44. All the checks that have not appeared on the bank statement
outstanding checks
current liabilities
intangible capital assets
sole proprietorship
45. What is used to reference a company's Canadian GST and HST
Share capital accounts - retained earnings
accumulated depreciation account
general ledger trial balance
business number
46. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
raw material inventory
capital assets
non-operating income
work in process inventory
47. Also know as the net book value
goodwill
board of directors
net value
trial balance
48. Account maintained for small purchases
accounts receivable ledger
statement of retained earnings
reconciling the petty cash account
petty cash account
49. A record of a purchase made by a company - showing the terms and conditions for payment
capital assets
Accounts Payable Ledger
accounts receivable
purchase invoice
50. Who makes the decision on the amount to keep in the petty cash account
trademarks
outstanding deposits
management
service company