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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. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset






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






3. Account maintained for small purchases






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






5. First part of the income statement






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






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






8. What is used to reference a company's Canadian GST and HST






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






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






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






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






13. Two types of share capital accounts






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






15. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared






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






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






18. Also know as the net book value






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






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






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






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






23. 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






24. Oversees the management of the company/corporation






25. The process of recording the transactions and financial activities of a business






26. A record of a purchase made by a company - showing the terms and conditions for payment






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






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






29. Assets that have no physical form - but have value and are an integral part of the cost of doing business






30. This business does not have a purchase account and no inventory is recorded on the balance sheet






31. 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






32. Are not intended for resale






33. Deposits that have not yet been deposited in the bank account






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






35. A specialized journal used to systematically record all cash received from customers payments on account - and from other sources such as cash sales - interest and sales taxes






36. 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






37. 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






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






39. Formula to calculate the depreciation for the year






40. A business that offers services to the public






41. Calculated by subtracting sales from the cogs






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






43. Formula to calculate the net book value






44. All daily transactions are entered through these






45. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years






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






47. 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.






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






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






50. This is reported after the net income on an income statement