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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. Deposits that have not yet been deposited in the bank account
capital assets
outstanding deposits
raw material inventory
petty cash account
2. 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
income after taxes
finished goods inventory
bookkeeping
3. Signed by all partners in a partneship to establish rules about how the business is going to be run
gross margin
statement of retained earnings
daily
partnership agreement
4. Assets that have no physical form - but have value and are an integral part of the cost of doing business
intangible capital assets
accounts receivable
accumulated depreciation account
income after taxes
5. This is reported after the net income on an income statement
income tax expenses - income tax payable
income statement
purchase journal
non-operating income
6. 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
land
capital assets
capital assets
integrated
7. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
Cost of Goods Sold
partnership
licenses
service company
8. Lists all customers and their outstanding balances for non cash or on account sales made
accounts receivable ledger
Income Summary - revenue - expense - capital
business number
net book value
9. Prepared by corporations - similar to a statement of owners equity
service business
statement of retained earnings
outstanding checks
(cost of capital asset - residual value) / (expected useful life of capital asset)
10. A business owned by one or more individuals who are known as shareholders
corporation
intangible capital assets
business number
land
11. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
residual value
land
amortization
income after taxes
12. Net income is also known as this on an income statement
earnings before interest and taxes
daily
Accounts Receivable Ledger
accounts receivable ledger trial balance
13. Account maintained for small purchases
petty cash account
purchase journal
retained earnings account
accounts receivable ledger
14. A legal document giving official permission to do something
licenses
accounts payable ledger
integration
Accounts Receivable Ledger
15. Who makes the decision on the amount to keep in the petty cash account
management
intangible capital assets
business number
goodwill
16. A partnership has a separate __________ and ____________ account for each partner
capital and drawings account
licenses
land
bookkeeping
17. Formula to calculate the depreciation for the year
petty cash account
accounts receivable
work in process inventory
depreciation = net book value * %
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
statement of owners equity
accounts payable ledger
capital account
integration
19. 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
Accounts Receivable Ledger
bank reconciliation statement
income after taxes
depreciation
20. 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
cash receipts journal
income before taxes
income after taxes
accounts receivable ledger trial balance
21. Account is reduced by the value of dividends paid to the shareholder
retained earnings account
amortization
outstanding deposits
intangible capital assets
22. What is used to reference a company's Canadian GST and HST
capital assets
petty cash account
business number
depreciation = net book value * %
23. When a merchandising business prepares its income statement it includes a section called.....
finished goods inventory
Cost of Goods Sold
income after taxes
long term liabilities
24. Shareholders equity contains two different types of accounts.... What are they
board of directors
Accounts Payable Ledger
Share capital accounts - retained earnings
(cost of capital asset - residual value) / (expected useful life of capital asset)
25. 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.
work in process inventory
balance sheet
reconciling the petty cash account
raw material inventory
26. Oversees the management of the company/corporation
board of directors
management
Accounts Receivable Ledger
cash receipts journal
27. 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
capital assets
accounts payable and accrued expenses
drawings account
residual value
28. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
earnings before interest and taxes
declining balance method
bookkeeping
Accounts Receivable Ledger
29. Owner of a business owned by a single individual
long term liabilities
proprietor
accounts receivable ledger
accounts payable ledger
30. Companies that transform raw materials into finished goods for sale
capital assets
capital assets
net value
manufacturing organizations
31. Lists all vendors to whom your company has purchases
partnership agreement
petty cash account
trademarks
Accounts Payable Ledger
32. All daily transactions are entered through these
balance sheet
manufacturing organizations
goodwill
modules
33. A business that offers services to the public
depreciation = net book value * %
service company
business number
board of directors
34. One is maintained for all classes of capital assets
long term liabilities
accounts receivable ledger
depreciation expense account
management
35. You only have to enter business data once
Accounts Payable Ledger
integrated
business number
capital and drawings account
36. Includes all debt that is due in more than one year
bookkeeping
sales journal
retained earnings account
long term liabilities
37. 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
capital assets
trial balance
cash receipts and cash disbursements journals
service company
38. 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
income before taxes
Sales
corporation
land
39. All the checks that have not appeared on the bank statement
outstanding checks
purchase invoice
accumulated depreciation account
accounts receivable
40. A separate one is maintained for each class of capital assets
accumulated depreciation account
partnership agreement
straight line depreciation
proprietor
41. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
drawings account
common share accounts - preferred share accounts
Accounts payable
cash disbursements journal
42. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
Accounts Receivable Ledger
work in process inventory
finished goods inventory
invoices
43. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
income tax expenses - income tax payable
proprietor
capital assets
cash receipts journal
44. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
service business
patents
capital assets
net value
45. 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
drawings - capital - Income Summary - capital
capital assets
Share capital accounts - retained earnings
accounts payable ledger
46. Two types of share capital accounts
invoices
Accounts payable
common share accounts - preferred share accounts
earnings before interest and taxes
47. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
Share capital accounts - retained earnings
income after taxes
basic - pro - premium
drawings account
48. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
land
Accounts Receivable Ledger
income tax expenses - income tax payable
(cost of capital asset - residual value) / (expected useful life of capital asset)
49. The process of recording the transactions and financial activities of a business
management
net book value = original cost of asset - accumulated depreciation`
bookkeeping
integration
50. How often are the accounts payable entries entered into the accounts payable ledger
daily
manufacturing organizations
gross margin
outstanding checks