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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. 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






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






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






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






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






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






7. 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






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






9. Also know as the net book value






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






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






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






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






14. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin






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






16. A business that is owned by a single individual






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






18. A business owned by one or more individuals who are known as shareholders






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






20. What account is on the cash receipts and sales journals






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






22. Formula to calculate the net book value






23. Formula to calculate the depreciation for the year






24. Oversees the management of the company/corporation






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






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






27. 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.






28. Shows how much income has been earned b the business during the time period






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






30. 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






31. Are not intended for resale






32. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing






33. One is maintained for all classes of capital assets






34. 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






35. First part of the income statement






36. Must be held for use in the production of goods and/or services






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






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






39. Represents the expected value of the asset at the end of its useful life to the business






40. 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






41. 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






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






43. Two types of share capital accounts






44. Prepared by sole proprietors and partnerships






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






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






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






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






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






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