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






2. All daily transactions are entered through these






3. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax






4. First part of the income statement






5. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers






6. Represents the assets on hand - the liabilities owed and the owners equity






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






8. All the checks that have not appeared on the bank statement






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






10. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset






11. Account maintained for small purchases






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






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






14. Formula to calculate the depreciation for the year






15. Consist of physical assets and non-physical or intangible properties






16. Two types of share capital accounts






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






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






19. 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






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






21. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention






22. 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






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






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






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






26. One is maintained for all classes of capital assets






27. Prepared by sole proprietors and partnerships






28. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale






29. 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






30. 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






31. Owner of a business owned by a single individual






32. 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






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






34. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset






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






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






37. This business purchases products from its vendors for resale to its customers






38. Also know as the net book value






39. Account used to record the net income that is retained in the business at the end of the year






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






41. Formula to calculate the net book value






42. Deposits that have not yet been deposited in the bank account






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






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






45. 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






46. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement






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






48. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset






49. Listed on the balance sheet are assets that can be turned into cash within one year






50. How often are the accounts payable entries entered into the accounts payable ledger