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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. 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
land
trademarks
Sales
licenses
2. Must have a useful life of more than one year
drawings - capital - Income Summary - capital
capital assets
licenses
basic - pro - premium
3. What is the formula for calculating straight-line depreciation
balance sheet
(cost of capital asset - residual value) / (expected useful life of capital asset)
Accounts Receivable Ledger
capital assets
4. A business owned by one or more individuals who are known as shareholders
capital account
net book value
current liabilities
corporation
5. All daily transactions are entered through these
Cost of Goods Sold
patents
modules
cash disbursements journal
6. The ledgers are linked to the general ledger by this process
(cost of capital asset - residual value) / (expected useful life of capital asset)
balance sheet
net book value = original cost of asset - accumulated depreciation`
integration
7. First part of the income statement
cash receipts and cash disbursements journals
Sales
licenses
statement of owners equity
8. Represents the expected value of the asset at the end of its useful life to the business
raw material inventory
daily
bookkeeping
residual value
9. 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
Share capital accounts - retained earnings
bank reconciliation statement
accumulated depreciation account
Accounts Payable Ledger
10. This is reported after the net income on an income statement
depreciation
capital assets
non-operating income
partnership agreement
11. In a corporations books - the equity section is referred to as _________ ________
capital assets
drawings - capital - Income Summary - capital
statement of owners equity
Shareholders equity
12. Used to write off the cost of an intangible capital asset
amortization
long term liabilities
land
income before taxes
13. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
service company
capital assets
petty cash record
partnership
14. What account is on the purchases and cash disbursements journals
Accounts payable
(cost of capital asset - residual value) / (expected useful life of capital asset)
integrated
Cost of Goods Sold
15. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
capital assets
income tax expenses - income tax payable
accounts receivable ledger
long term liabilities
16. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
partnership agreement
general ledger trial balance
reconciling the petty cash account
Accounts Payable Ledger
17. Shareholders equity contains two different types of accounts.... What are they
land
Shareholders equity
purchase journal
Share capital accounts - retained earnings
18. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
capital account
proprietor
board of directors
net book value = original cost of asset - accumulated depreciation`
19. 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
accounts receivable ledger trial balance
statement of owners equity
sole proprietorship
income after taxes
20. Represents the assets on hand - the liabilities owed and the owners equity
Shareholders equity
raw material inventory
current assets
balance sheet
21. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
proprietor
partnership agreement
accounts receivable ledger
depreciation expense account
22. Account used to record the net income that is retained in the business at the end of the year
integrated
Sales
accounts receivable
retained earnings account
23. Signed by all partners in a partneship to establish rules about how the business is going to be run
income statement
Cost of Goods Sold
outstanding checks
partnership agreement
24. 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
net income
accounts payable and accrued expenses
capital assets
board of directors
25. Documents issued by companies as evidence of transactions made
management
capital and drawings account
cash receipts and cash disbursements journals
invoices
26. The process of recording the transactions and financial activities of a business
capital and drawings account
bookkeeping
common share accounts - preferred share accounts
invoices
27. 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
corporation
petty cash account
land
Accounts Receivable Ledger
28. Amounts owed by the company that are due within one year of the balance sheet date
depreciation = net book value * %
gross margin
current liabilities
capital assets
29. 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
petty cash account
earnings before interest and taxes
cash disbursements journal
land
30. Listed on the balance sheet are assets that can be turned into cash within one year
Accounts Receivable Ledger
current assets
raw material inventory
declining balance method
31. Calculated by subtracting sales from the cogs
gross margin
trademarks
amortization
trial balance
32. Prepared by corporations - similar to a statement of owners equity
outstanding deposits
statement of retained earnings
statement of owners equity
Income Summary - revenue - expense - capital
33. Owner of a business owned by a single individual
land
proprietor
sales journal
board of directors
34. Also know as the net book value
net value
modules
service business
capital assets
35. 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
drawings - capital - Income Summary - capital
general ledger trial balance
trial balance
net income
36. All the checks that have not appeared on the bank statement
outstanding checks
current liabilities
outstanding deposits
depreciation expense account
37. Are not intended for resale
capital assets
integrated
petty cash record
retained earnings account
38. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
integrated
service business
declining balance method
capital assets
39. Assets that have no physical form - but have value and are an integral part of the cost of doing business
merchandising business
intangible capital assets
Cost of Goods Sold
capital account
40. Has an indefinate life span and is not considered to reduce in value over time
cash receipts journal
capital assets
land
trial balance
41. How often are the accounts payable entries entered into the accounts payable ledger
daily
trial balance
business number
outstanding checks
42. Information from the purchase invoice is recorded In what journal
partnership agreement
retained earnings account
purchase journal
net value
43. Account is reduced by the value of dividends paid to the shareholder
balance sheet
(cost of capital asset - residual value) / (expected useful life of capital asset)
accounts receivable ledger
retained earnings account
44. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
Shareholders equity
patents
Accounts payable
Sales
45. Includes all debt that is due in more than one year
proprietor
merchandising business
straight line depreciation
long term liabilities
46. Lists all vendors to whom your company has purchases
Accounts Payable Ledger
service company
depreciation = net book value * %
balance sheet
47. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
service business
capital assets
income after taxes
modules
48. 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
work in process inventory
goodwill
accounts payable and accrued expenses
statement of owners equity
49. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
modules
accounts payable and accrued expenses
accounts receivable ledger
depreciation
50. A record of a purchase made by a company - showing the terms and conditions for payment
income tax expenses - income tax payable
purchase invoice
accounts receivable ledger
finished goods inventory