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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. Calculated by subtracting sales from the cogs






2. A legal document giving official permission to do something






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






4. 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






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






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






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






8. First part of the income statement






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






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






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






12. How often are the accounts payable entries entered into the accounts payable ledger






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






14. Signed by all partners in a partneship to establish rules about how the business is going to be run






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






16. A separate one is maintained for each class of capital assets






17. Also know as the net book value






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






19. Formula to calculate the depreciation for the year






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






21. One is maintained for all classes of capital assets






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






23. What account is on the purchases and cash disbursements journals






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






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






26. A number of owners join together and create one business in which they each own an agreed upon percentage






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






28. Two types of share capital accounts






29. When you proceed to reconcile your bank account you will use these two things






30. 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






31. Oversees the management of the company/corporation






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






33. Prepared by sole proprietors and partnerships






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






35. The ______ ______ account is used int he closing process for transferring the balances of the _______ and _______ account to the partners ________ accounts at the end of the period






36. Lists all customers and their outstanding balances for non cash or on account sales made






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






38. Net income is also known as this on an income statement






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






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






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






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






43. 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






44. Information from the purchase invoice is recorded In what journal






45. Amounts owed by the company that are due within one year of the balance sheet date






46. 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.






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






48. As a rule these should always be recorded on the balance sheet at cost






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






50. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______