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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. First part of the income statement
Sales
depreciation expense account
work in process inventory
Shareholders equity
2. In a corporations books - the equity section is referred to as _________ ________
Shareholders equity
manufacturing organizations
non-operating income
modules
3. 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
land
residual value
Accounts Receivable Ledger
4. All daily transactions are entered through these
residual value
modules
invoices
land
5. Amounts owed by the company that are due within one year of the balance sheet date
accounts receivable ledger trial balance
depreciation
current liabilities
capital assets
6. All the checks that have not appeared on the bank statement
sole proprietorship
service business
residual value
outstanding checks
7. You only have to enter business data once
accounts receivable
income statement
non-operating income
integrated
8. Prepared by sole proprietors and partnerships
accounts receivable ledger trial balance
income after taxes
accounts receivable ledger
statement of owners equity
9. A business that is owned by a single individual
sole proprietorship
capital assets
common share accounts - preferred share accounts
depreciation expense account
10. 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
basic - pro - premium
depreciation
Cost of Goods Sold
land
11. Represents the expected value of the asset at the end of its useful life to the business
non-operating income
integration
residual value
retained earnings account
12. Deposits that have not yet been deposited in the bank account
accounts receivable ledger
sales journal
daily
outstanding deposits
13. Formula to calculate the net book value
service company
net book value
amortization
net book value = original cost of asset - accumulated depreciation`
14. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
income after taxes
Accounts Payable Ledger
finished goods inventory
straight line depreciation
15. Account used to record the net income that is retained in the business at the end of the year
retained earnings account
income before taxes
corporation
declining balance method
16. 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
bank reconciliation statement
long term liabilities
Accounts payable
work in process inventory
17. The ledgers are linked to the general ledger by this process
board of directors
trial balance
integration
capital assets
18. Calculated by subtracting sales from the cogs
capital account
partnership agreement
gross margin
cash receipts journal
19. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
drawings account
net income
income statement
general ledger trial balance
20. A separate one is maintained for each class of capital assets
straight line depreciation
goodwill
accumulated depreciation account
corporation
21. Lists all vendors to whom your company has purchases
petty cash account
declining balance method
capital assets
Accounts Payable Ledger
22. Companies that transform raw materials into finished goods for sale
Accounts Receivable Ledger
manufacturing organizations
capital assets
service business
23. When a merchandising business prepares its income statement it includes a section called.....
corporation
income statement
Cost of Goods Sold
accounts receivable ledger trial balance
24. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
finished goods inventory
accounts receivable ledger trial balance
straight line depreciation
management
25. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
sole proprietorship
Income Summary - revenue - expense - capital
cash receipts journal
Cost of Goods Sold
26. Information from the purchase invoice is recorded In what journal
purchase journal
amortization
Cost of Goods Sold
residual value
27. 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
capital assets
bank reconciliation statement
Income Summary - revenue - expense - capital
proprietor
28. Shows how much income has been earned b the business during the time period
partnership agreement
net book value = original cost of asset - accumulated depreciation`
net book value
income statement
29. Account maintained for small purchases
trial balance
land
sales journal
petty cash account
30. Shareholders equity contains two different types of accounts.... What are they
Accounts Receivable Ledger
Share capital accounts - retained earnings
general ledger trial balance
board of directors
31. Who makes the decision on the amount to keep in the petty cash account
management
income tax expenses - income tax payable
trademarks
net book value
32. This is reported after the net income on an income statement
depreciation
non-operating income
manufacturing organizations
raw material inventory
33. 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
invoices
trademarks
integrated
net book value
34. A business that offers services to the public
capital assets
service company
Accounts Receivable Ledger
cash disbursements journal
35. A legal document giving official permission to do something
capital account
earnings before interest and taxes
capital assets
licenses
36. 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.
patents
straight line depreciation
declining balance method
work in process inventory
37. Net income is also known as this on an income statement
trademarks
Income Summary - revenue - expense - capital
earnings before interest and taxes
capital assets
38. Also know as the net book value
basic - pro - premium
accounts receivable
net value
drawings account
39. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
cash receipts and cash disbursements journals
general ledger trial balance
land
trademarks
40. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
work in process inventory
Accounts Receivable Ledger
sales journal
raw material inventory
41. Oversees the management of the company/corporation
Accounts Receivable Ledger
income before taxes
board of directors
residual value
42. Two types of share capital accounts
express or custom
common share accounts - preferred share accounts
general ledger trial balance
raw material inventory
43. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
trial balance
residual value
raw material inventory
income tax expenses - income tax payable
44. At the end of the year - the bookkeeper will close each partner's __________ account to his/her _______ account and allocate each partner's share of the net income or loss in the business from the _________ ________ Account to his/her ________ accoun
intangible capital assets
capital assets
current liabilities
drawings - capital - Income Summary - capital
45. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
petty cash record
statement of owners equity
land
service company
46. A number of owners join together and create one business in which they each own an agreed upon percentage
partnership
Cost of Goods Sold
merchandising business
reconciling the petty cash account
47. A business owned by one or more individuals who are known as shareholders
income after taxes
corporation
amortization
invoices
48. Listed on the balance sheet are assets that can be turned into cash within one year
partnership
current assets
accounts receivable ledger
capital assets
49. Represents the assets on hand - the liabilities owed and the owners equity
earnings before interest and taxes
accounts payable ledger
income statement
balance sheet
50. The process of recording the transactions and financial activities of a business
bookkeeping
current assets
balance sheet
land