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Test your basic knowledge |
Bookkeeping Advanced Vocab
Start Test
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. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin
depreciation expense account
net income
earnings before interest and taxes
accounts receivable ledger trial balance
2. What is used to reference a company's Canadian GST and HST
business number
Cost of Goods Sold
capital assets
outstanding deposits
3. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
Accounts Receivable Ledger
Sales
express or custom
capital and drawings account
4. A business owned by one or more individuals who are known as shareholders
corporation
net income
retained earnings account
statement of owners equity
5. The ledgers are linked to the general ledger by this process
accounts receivable ledger
integration
goodwill
sales journal
6. Account used to record the net income that is retained in the business at the end of the year
retained earnings account
non-operating income
net book value
partnership agreement
7. Shows how much income has been earned b the business during the time period
income statement
Shareholders equity
land
business number
8. How often are the accounts payable entries entered into the accounts payable ledger
Cost of Goods Sold
accounts payable and accrued expenses
Accounts Payable Ledger
daily
9. 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
retained earnings account
Shareholders equity
general ledger trial balance
land
10. Lists all vendors to whom your company has purchases
net book value = original cost of asset - accumulated depreciation`
Accounts Payable Ledger
Accounts payable
invoices
11. A business that is owned by a single individual
sole proprietorship
statement of owners equity
capital assets
outstanding checks
12. 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
balance sheet
partnership
accounts payable ledger
cash disbursements journal
13. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
income tax expenses - income tax payable
common share accounts - preferred share accounts
income after taxes
purchase journal
14. Oversees the management of the company/corporation
board of directors
raw material inventory
purchase invoice
integration
15. Net income is also known as this on an income statement
capital assets
service company
earnings before interest and taxes
gross margin
16. Companies that transform raw materials into finished goods for sale
current assets
outstanding deposits
manufacturing organizations
land
17. A legal document giving official permission to do something
purchase journal
income before taxes
petty cash record
licenses
18. The two start up methods on simply accountin through the set up wizard
income before taxes
express or custom
depreciation = net book value * %
depreciation
19. Account is reduced by the value of dividends paid to the shareholder
retained earnings account
income after taxes
straight line depreciation
bank reconciliation statement
20. Information from the sales invoice is recorded In what journal
sales journal
Sales
intangible capital assets
statement of retained earnings
21. What account is on the cash receipts and sales journals
Share capital accounts - retained earnings
accounts receivable
sole proprietorship
general ledger trial balance
22. Also know as the net book value
basic - pro - premium
Cost of Goods Sold
Share capital accounts - retained earnings
net value
23. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
(cost of capital asset - residual value) / (expected useful life of capital asset)
drawings - capital - Income Summary - capital
integrated
net book value
24. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
earnings before interest and taxes
capital assets
raw material inventory
statement of owners equity
25. 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
proprietor
accounts receivable ledger trial balance
income after taxes
Income Summary - revenue - expense - capital
26. Deposits that have not yet been deposited in the bank account
residual value
outstanding deposits
invoices
general ledger trial balance
27. Formula to calculate the depreciation for the year
common share accounts - preferred share accounts
depreciation = net book value * %
modules
licenses
28. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
drawings account
net income
partnership
management
29. Prepared by corporations - similar to a statement of owners equity
accounts payable ledger
Accounts payable
statement of retained earnings
current liabilities
30. The process of comparing the cash plus receipts to the original balance int he account
Cost of Goods Sold
reconciling the petty cash account
Cost of Goods Sold
cash disbursements journal
31. Must have a useful life of more than one year
non-operating income
outstanding checks
goodwill
capital assets
32. This business purchases products from its vendors for resale to its customers
petty cash account
service business
accounts receivable
merchandising business
33. What account is on the purchases and cash disbursements journals
Accounts payable
purchase invoice
basic - pro - premium
capital assets
34. Represents the assets on hand - the liabilities owed and the owners equity
balance sheet
statement of retained earnings
sole proprietorship
Cost of Goods Sold
35. Must be held for use in the production of goods and/or services
raw material inventory
land
board of directors
capital assets
36. First part of the income statement
Sales
trial balance
manufacturing organizations
service business
37. Lists all customers and their outstanding balances for non cash or on account sales made
accounts receivable ledger
management
common share accounts - preferred share accounts
income after taxes
38. 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
trademarks
income before taxes
accounts payable ledger
Cost of Goods Sold
39. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
capital and drawings account
Accounts Payable Ledger
work in process inventory
business number
40. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
current assets
cash disbursements journal
service business
finished goods inventory
41. Shareholders equity contains two different types of accounts.... What are they
licenses
declining balance method
current assets
Share capital accounts - retained earnings
42. Each subsidiary ledger has this prepared to ensure that the credit/debit columns balance and are then compared with the control account in the general ledger
trial balance
outstanding checks
current liabilities
statement of owners equity
43. A partnership has a separate __________ and ____________ account for each partner
express or custom
merchandising business
current assets
capital and drawings account
44. The process of recording the transactions and financial activities of a business
land
board of directors
bookkeeping
management
45. A number of owners join together and create one business in which they each own an agreed upon percentage
partnership
petty cash record
outstanding checks
Sales
46. As a rule these should always be recorded on the balance sheet at cost
net book value
capital assets
daily
Income Summary - revenue - expense - capital
47. Are not intended for resale
capital assets
daily
net book value = original cost of asset - accumulated depreciation`
cash receipts journal
48. Used to write off the cost of an intangible capital asset
(cost of capital asset - residual value) / (expected useful life of capital asset)
amortization
accounts receivable ledger
cash disbursements journal
49. When you proceed to reconcile your bank account you will use these two things
basic - pro - premium
raw material inventory
statement of owners equity
cash receipts and cash disbursements journals
50. 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
net book value
statement of owners equity
income statement
cash receipts journal