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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. What are the three versions of simply accounting
basic - pro - premium
trial balance
Cost of Goods Sold
accounts receivable
2. Formula to calculate the depreciation for the year
declining balance method
integrated
capital assets
depreciation = net book value * %
3. Deposits that have not yet been deposited in the bank account
drawings account
accounts receivable
outstanding deposits
statement of owners equity
4. Prepared by sole proprietors and partnerships
statement of owners equity
capital account
net book value = original cost of asset - accumulated depreciation`
goodwill
5. All daily transactions are entered through these
modules
daily
service company
invoices
6. 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
accounts receivable ledger trial balance
amortization
bookkeeping
trademarks
7. Net income is also known as this on an income statement
basic - pro - premium
(cost of capital asset - residual value) / (expected useful life of capital asset)
earnings before interest and taxes
general ledger trial balance
8. 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
cash disbursements journal
Income Summary - revenue - expense - capital
express or custom
land
9. Includes all debt that is due in more than one year
long term liabilities
purchase invoice
accumulated depreciation account
accounts receivable ledger
10. One is maintained for all classes of capital assets
capital assets
depreciation expense account
goodwill
cash receipts and cash disbursements journals
11. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
Accounts Receivable Ledger
depreciation
accounts payable ledger
accounts receivable
12. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
capital and drawings account
raw material inventory
accounts receivable ledger trial balance
balance sheet
13. Also know as the net book value
manufacturing organizations
net value
merchandising business
drawings - capital - Income Summary - capital
14. Used to write off the cost of an intangible capital asset
proprietor
income tax expenses - income tax payable
amortization
outstanding deposits
15. Account maintained for small purchases
income tax expenses - income tax payable
net book value = original cost of asset - accumulated depreciation`
bookkeeping
petty cash account
16. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
capital assets
trademarks
income tax expenses - income tax payable
depreciation expense account
17. Formula to calculate the net book value
accounts payable ledger
intangible capital assets
net book value = original cost of asset - accumulated depreciation`
general ledger trial balance
18. 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
partnership
drawings - capital - Income Summary - capital
current assets
accounts receivable ledger trial balance
19. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
retained earnings account
basic - pro - premium
board of directors
net income
20. Two types of share capital accounts
income after taxes
drawings account
common share accounts - preferred share accounts
integration
21. Consist of physical assets and non-physical or intangible properties
capital assets
accounts receivable ledger
income before taxes
income tax expenses - income tax payable
22. Documents issued by companies as evidence of transactions made
income before taxes
Accounts Payable Ledger
invoices
merchandising business
23. Owner of a business owned by a single individual
net book value
modules
proprietor
amortization
24. Has an indefinate life span and is not considered to reduce in value over time
land
retained earnings account
amortization
depreciation
25. All the checks that have not appeared on the bank statement
accounts receivable ledger trial balance
business number
outstanding checks
Cost of Goods Sold
26. The process of recording the transactions and financial activities of a business
cash disbursements journal
modules
statement of retained earnings
bookkeeping
27. The two start up methods on simply accountin through the set up wizard
cash receipts and cash disbursements journals
bookkeeping
express or custom
goodwill
28. Oversees the management of the company/corporation
service business
board of directors
declining balance method
accounts payable and accrued expenses
29. When you proceed to reconcile your bank account you will use these two things
capital assets
cash receipts and cash disbursements journals
capital assets
income after taxes
30. Must be held for use in the production of goods and/or services
long term liabilities
amortization
sales journal
capital assets
31. Information from the purchase invoice is recorded In what journal
finished goods inventory
Cost of Goods Sold
Shareholders equity
purchase journal
32. Information from the sales invoice is recorded In what journal
integration
statement of owners equity
work in process inventory
sales journal
33. A business owned by one or more individuals who are known as shareholders
corporation
drawings account
current assets
purchase invoice
34. 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
invoices
goodwill
petty cash account
outstanding checks
35. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
accounts receivable ledger
finished goods inventory
petty cash record
accounts payable and accrued expenses
36. A legal document giving official permission to do something
licenses
current liabilities
petty cash record
cash receipts journal
37. The ledgers are linked to the general ledger by this process
accounts receivable ledger trial balance
modules
capital assets
integration
38. A record of a purchase made by a company - showing the terms and conditions for payment
purchase invoice
Income Summary - revenue - expense - capital
retained earnings account
straight line depreciation
39. 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
daily
common share accounts - preferred share accounts
trademarks
40. How often are the accounts payable entries entered into the accounts payable ledger
net value
current liabilities
daily
purchase journal
41. Listed on the balance sheet are assets that can be turned into cash within one year
current assets
capital assets
purchase invoice
Accounts payable
42. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
retained earnings account
depreciation = net book value * %
Accounts Receivable Ledger
partnership
43. What is the formula for calculating straight-line depreciation
accounts receivable ledger
(cost of capital asset - residual value) / (expected useful life of capital asset)
capital assets
service company
44. When a merchandising business prepares its income statement it includes a section called.....
Cost of Goods Sold
balance sheet
earnings before interest and taxes
income after taxes
45. What account is on the cash receipts and sales journals
accounts receivable
purchase journal
Accounts Payable Ledger
earnings before interest and taxes
46. Shareholders equity contains two different types of accounts.... What are they
land
modules
Share capital accounts - retained earnings
Cost of Goods Sold
47. Signed by all partners in a partneship to establish rules about how the business is going to be run
partnership agreement
capital assets
current liabilities
retained earnings account
48. The process of comparing the cash plus receipts to the original balance int he account
accounts receivable ledger
reconciling the petty cash account
cash receipts journal
accounts receivable ledger trial balance
49. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
cash receipts journal
Accounts Receivable Ledger
modules
proprietor
50. A partnership has a separate __________ and ____________ account for each partner
income statement
(cost of capital asset - residual value) / (expected useful life of capital asset)
Accounts payable
capital and drawings account