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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. Calculated by subtracting sales from the cogs
Accounts Receivable Ledger
statement of retained earnings
board of directors
gross margin
2. A legal document giving official permission to do something
retained earnings account
income tax expenses - income tax payable
sales journal
licenses
3. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
general ledger trial balance
partnership
Accounts Receivable Ledger
integration
4. 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
capital assets
common share accounts - preferred share accounts
capital assets
trademarks
5. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
Share capital accounts - retained earnings
net income
Accounts Payable Ledger
outstanding checks
6. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
capital assets
income statement
Sales
drawings account
7. Represents the assets on hand - the liabilities owed and the owners equity
capital assets
service business
balance sheet
partnership agreement
8. First part of the income statement
land
Sales
accounts receivable
current liabilities
9. When a merchandising business prepares its income statement it includes a section called.....
Cost of Goods Sold
retained earnings account
capital assets
bookkeeping
10. Account used to record the net income that is retained in the business at the end of the year
depreciation = net book value * %
retained earnings account
Shareholders equity
integrated
11. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
depreciation
bookkeeping
integration
residual value
12. How often are the accounts payable entries entered into the accounts payable ledger
declining balance method
business number
capital and drawings account
daily
13. In a corporations books - the equity section is referred to as _________ ________
capital assets
(cost of capital asset - residual value) / (expected useful life of capital asset)
Shareholders equity
capital and drawings account
14. Signed by all partners in a partneship to establish rules about how the business is going to be run
partnership agreement
service company
express or custom
board of directors
15. Companies that transform raw materials into finished goods for sale
accumulated depreciation account
accounts receivable ledger
manufacturing organizations
modules
16. A separate one is maintained for each class of capital assets
depreciation = net book value * %
capital assets
business number
accumulated depreciation account
17. Also know as the net book value
purchase journal
partnership
Cost of Goods Sold
net value
18. Consist of physical assets and non-physical or intangible properties
net income
capital assets
basic - pro - premium
express or custom
19. Formula to calculate the depreciation for the year
accounts receivable
amortization
depreciation = net book value * %
gross margin
20. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
trial balance
proprietor
statement of owners equity
accounts receivable ledger
21. One is maintained for all classes of capital assets
cash receipts and cash disbursements journals
management
depreciation expense account
sole proprietorship
22. Assets that have no physical form - but have value and are an integral part of the cost of doing business
depreciation expense account
intangible capital assets
integrated
petty cash record
23. What account is on the purchases and cash disbursements journals
modules
licenses
merchandising business
Accounts payable
24. A record of a purchase made by a company - showing the terms and conditions for payment
reconciling the petty cash account
accounts receivable ledger
income statement
purchase invoice
25. What is the formula for calculating straight-line depreciation
(cost of capital asset - residual value) / (expected useful life of capital asset)
Share capital accounts - retained earnings
patents
outstanding deposits
26. A number of owners join together and create one business in which they each own an agreed upon percentage
land
partnership
Income Summary - revenue - expense - capital
purchase journal
27. This is reported after the net income on an income statement
purchase invoice
service business
non-operating income
service company
28. Two types of share capital accounts
Share capital accounts - retained earnings
Accounts Receivable Ledger
retained earnings account
common share accounts - preferred share accounts
29. When you proceed to reconcile your bank account you will use these two things
drawings account
cash receipts and cash disbursements journals
trademarks
retained earnings account
30. 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
bank reconciliation statement
land
sole proprietorship
earnings before interest and taxes
31. Oversees the management of the company/corporation
Sales
capital assets
board of directors
capital assets
32. Calculated from adding the non operating expenses to the net income
Accounts payable
finished goods inventory
income statement
income before taxes
33. Prepared by sole proprietors and partnerships
land
Accounts payable
statement of owners equity
gross margin
34. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
reconciling the petty cash account
manufacturing organizations
petty cash record
depreciation = net book value * %
35. 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
income tax expenses - income tax payable
daily
net income
36. Lists all customers and their outstanding balances for non cash or on account sales made
earnings before interest and taxes
accounts receivable ledger
partnership
board of directors
37. All the checks that have not appeared on the bank statement
cash disbursements journal
service business
outstanding checks
trademarks
38. Net income is also known as this on an income statement
earnings before interest and taxes
petty cash account
statement of owners equity
manufacturing organizations
39. Information from the sales invoice is recorded In what journal
sales journal
management
licenses
capital assets
40. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes
business number
Accounts payable
cash disbursements journal
capital assets
41. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
raw material inventory
retained earnings account
service business
modules
42. Who makes the decision on the amount to keep in the petty cash account
partnership
management
declining balance method
accumulated depreciation account
43. 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
current assets
merchandising business
cash receipts journal
Accounts Payable Ledger
44. Information from the purchase invoice is recorded In what journal
purchase journal
capital assets
capital assets
balance sheet
45. Amounts owed by the company that are due within one year of the balance sheet date
current liabilities
express or custom
land
management
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.
land
Sales
work in process inventory
service company
47. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
depreciation = net book value * %
straight line depreciation
capital assets
current liabilities
48. As a rule these should always be recorded on the balance sheet at cost
corporation
earnings before interest and taxes
capital assets
petty cash record
49. The process of recording the transactions and financial activities of a business
cash receipts and cash disbursements journals
bookkeeping
sales journal
proprietor
50. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
drawings - capital - Income Summary - capital
capital assets
Accounts Receivable Ledger
capital assets