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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. What account is on the cash receipts and sales journals
accounts receivable ledger
accounts receivable
balance sheet
(cost of capital asset - residual value) / (expected useful life of capital asset)
2. A business that offers services to the public
service company
Cost of Goods Sold
drawings account
income tax expenses - income tax payable
3. A number of owners join together and create one business in which they each own an agreed upon percentage
partnership
general ledger trial balance
accounts payable ledger
straight line depreciation
4. Listed on the balance sheet are assets that can be turned into cash within one year
current assets
business number
capital assets
accounts receivable ledger
5. You only have to enter business data once
retained earnings account
integrated
straight line depreciation
land
6. Owner of a business owned by a single individual
accumulated depreciation account
income before taxes
proprietor
petty cash account
7. What is used to reference a company's Canadian GST and HST
business number
cash receipts journal
proprietor
patents
8. Companies that transform raw materials into finished goods for sale
cash disbursements journal
accounts payable ledger
sales journal
manufacturing organizations
9. Account used to record the net income that is retained in the business at the end of the year
retained earnings account
Cost of Goods Sold
general ledger trial balance
capital and drawings account
10. The ledgers are linked to the general ledger by this process
integration
cash receipts journal
net book value = original cost of asset - accumulated depreciation`
invoices
11. Consist of physical assets and non-physical or intangible properties
accumulated depreciation account
management
modules
capital assets
12. 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
bank reconciliation statement
current assets
cash receipts journal
board of directors
13. A partnership has a separate __________ and ____________ account for each partner
capital and drawings account
capital assets
partnership
statement of owners equity
14. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
accounts receivable ledger trial balance
service company
patents
merchandising business
15. A record of a purchase made by a company - showing the terms and conditions for payment
service business
income tax expenses - income tax payable
purchase invoice
capital and drawings account
16. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
drawings - capital - Income Summary - capital
net income
depreciation
long term liabilities
17. This business purchases products from its vendors for resale to its customers
statement of retained earnings
service business
daily
merchandising business
18. Deposits that have not yet been deposited in the bank account
trademarks
outstanding deposits
accounts receivable ledger
goodwill
19. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
accounts payable ledger
retained earnings account
Accounts Receivable Ledger
merchandising business
20. 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
current assets
non-operating income
declining balance method
21. Shows how much income has been earned b the business during the time period
purchase invoice
land
income statement
Share capital accounts - retained earnings
22. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
net book value
bookkeeping
gross margin
income tax expenses - income tax payable
23. Calculated by subtracting sales from the cogs
retained earnings account
purchase journal
express or custom
gross margin
24. 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
retained earnings account
non-operating income
25. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
capital assets
balance sheet
outstanding checks
service business
26. Amounts owed by the company that are due within one year of the balance sheet date
current liabilities
accounts payable ledger
Shareholders equity
daily
27. 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
Accounts Receivable Ledger
trial balance
capital account
current assets
28. 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
Income Summary - revenue - expense - capital
Shareholders equity
drawings - capital - Income Summary - capital
land
29. Represents the expected value of the asset at the end of its useful life to the business
Accounts Payable Ledger
residual value
straight line depreciation
Cost of Goods Sold
30. This business does not have a purchase account and no inventory is recorded on the balance sheet
net book value = original cost of asset - accumulated depreciation`
capital assets
service business
integrated
31. Formula to calculate the depreciation for the year
earnings before interest and taxes
proprietor
management
depreciation = net book value * %
32. In a corporations books - the equity section is referred to as _________ ________
outstanding checks
Shareholders equity
corporation
basic - pro - premium
33. What is the formula for calculating straight-line depreciation
Accounts Receivable Ledger
net value
(cost of capital asset - residual value) / (expected useful life of capital asset)
Shareholders equity
34. Oversees the management of the company/corporation
depreciation = net book value * %
board of directors
modules
land
35. What account is on the purchases and cash disbursements journals
drawings account
service business
Accounts payable
statement of owners equity
36. How often are the accounts payable entries entered into the accounts payable ledger
income before taxes
daily
net book value
Accounts Payable Ledger
37. 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
Sales
land
drawings - capital - Income Summary - capital
management
38. What are the three versions of simply accounting
amortization
basic - pro - premium
Sales
Accounts payable
39. A business that is owned by a single individual
sole proprietorship
(cost of capital asset - residual value) / (expected useful life of capital asset)
depreciation = net book value * %
residual value
40. Lists all vendors to whom your company has purchases
long term liabilities
capital account
residual value
Accounts Payable Ledger
41. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
cash receipts journal
patents
Cost of Goods Sold
depreciation
42. Must have a useful life of more than one year
Accounts payable
residual value
capital assets
Sales
43. Account maintained for small purchases
Income Summary - revenue - expense - capital
petty cash account
goodwill
earnings before interest and taxes
44. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
service company
straight line depreciation
cash receipts and cash disbursements journals
accounts receivable ledger
45. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
management
merchandising business
Accounts Receivable Ledger
cash receipts journal
46. 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
Accounts payable
Share capital accounts - retained earnings
trademarks
47. In this business there is usually one revenue account for each type of revenue earned - and there are various expense accounts where the costs of operating the business are recorded
capital account
service business
management
raw material inventory
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
merchandising business
integration
goodwill
cash receipts and cash disbursements journals
49. Calculated from adding the non operating expenses to the net income
accounts receivable ledger
income before taxes
service business
earnings before interest and taxes
50. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
income statement
balance sheet
petty cash record
raw material inventory