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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 the total expenses directly related to the operation of the buiness from the gross margin
general ledger trial balance
net income
goodwill
board of directors
2. The ledgers are linked to the general ledger by this process
capital assets
patents
modules
integration
3. Includes the costs of all goods that are complete and ready for sale
invoices
non-operating income
proprietor
finished goods inventory
4. A number of owners join together and create one business in which they each own an agreed upon percentage
partnership
accounts payable ledger
merchandising business
earnings before interest and taxes
5. 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
outstanding checks
Accounts Payable Ledger
purchase journal
land
6. Represents the assets on hand - the liabilities owed and the owners equity
balance sheet
drawings - capital - Income Summary - capital
capital assets
purchase invoice
7. This business purchases products from its vendors for resale to its customers
merchandising business
cash receipts journal
balance sheet
gross margin
8. Deposits that have not yet been deposited in the bank account
depreciation
outstanding deposits
express or custom
accounts receivable ledger
9. A separate one is maintained for each class of capital assets
depreciation
reconciling the petty cash account
capital assets
accumulated depreciation account
10. Represents the expected value of the asset at the end of its useful life to the business
cash receipts journal
residual value
Accounts Payable Ledger
Accounts payable
11. As a rule these should always be recorded on the balance sheet at cost
corporation
capital assets
sole proprietorship
land
12. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
purchase invoice
trial balance
income after taxes
accounts receivable ledger
13. 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
statement of owners equity
cash receipts and cash disbursements journals
current assets
drawings - capital - Income Summary - capital
14. The process of comparing the cash plus receipts to the original balance int he account
income before taxes
Accounts Receivable Ledger
reconciling the petty cash account
work in process inventory
15. Owner of a business owned by a single individual
depreciation = net book value * %
proprietor
land
merchandising business
16. Oversees the management of the company/corporation
common share accounts - preferred share accounts
board of directors
proprietor
outstanding deposits
17. When you proceed to reconcile your bank account you will use these two things
accounts payable ledger
trademarks
finished goods inventory
cash receipts and cash disbursements journals
18. A record of a purchase made by a company - showing the terms and conditions for payment
Cost of Goods Sold
purchase invoice
corporation
invoices
19. Must be held for use in the production of goods and/or services
land
Accounts Receivable Ledger
outstanding deposits
capital assets
20. This business does not have a purchase account and no inventory is recorded on the balance sheet
service business
corporation
Accounts Receivable Ledger
capital assets
21. Account used to record the net income that is retained in the business at the end of the year
long term liabilities
raw material inventory
retained earnings account
partnership
22. A business that is owned by a single individual
balance sheet
sole proprietorship
income after taxes
gross margin
23. In a corporations books - the equity section is referred to as _________ ________
Shareholders equity
petty cash record
service business
income before taxes
24. 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
sales journal
merchandising business
accounts payable ledger
Cost of Goods Sold
25. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
general ledger trial balance
service company
manufacturing organizations
straight line depreciation
26. All daily transactions are entered through these
work in process inventory
modules
express or custom
drawings - capital - Income Summary - capital
27. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
general ledger trial balance
modules
land
petty cash account
28. 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
accumulated depreciation account
purchase journal
accounts receivable
trial balance
29. A legal document giving official permission to do something
service business
accounts receivable
bookkeeping
licenses
30. Companies that transform raw materials into finished goods for sale
manufacturing organizations
trademarks
statement of retained earnings
Shareholders equity
31. Prepared by sole proprietors and partnerships
statement of owners equity
purchase journal
intangible capital assets
petty cash account
32. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
petty cash record
drawings account
income tax expenses - income tax payable
express or custom
33. Calculated from adding the non operating expenses to the net income
purchase journal
income before taxes
income after taxes
net book value = original cost of asset - accumulated depreciation`
34. Assets that have no physical form - but have value and are an integral part of the cost of doing business
depreciation
Accounts payable
land
intangible capital assets
35. Net income is also known as this on an income statement
patents
earnings before interest and taxes
modules
sole proprietorship
36. Formula to calculate the net book value
land
manufacturing organizations
net book value = original cost of asset - accumulated depreciation`
depreciation expense account
37. Prepared by corporations - similar to a statement of owners equity
statement of retained earnings
common share accounts - preferred share accounts
purchase invoice
accounts receivable ledger
38. 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
capital assets
goodwill
capital assets
petty cash account
39. Documents issued by companies as evidence of transactions made
invoices
capital assets
depreciation = net book value * %
depreciation expense account
40. Lists all vendors to whom your company has purchases
business number
Accounts Payable Ledger
capital assets
trademarks
41. Formula to calculate the depreciation for the year
general ledger trial balance
depreciation = net book value * %
depreciation expense account
Share capital accounts - retained earnings
42. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax
depreciation = net book value * %
business number
income tax expenses - income tax payable
Sales
43. Shareholders equity contains two different types of accounts.... What are they
Income Summary - revenue - expense - capital
Share capital accounts - retained earnings
net book value = original cost of asset - accumulated depreciation`
accounts receivable ledger trial balance
44. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
finished goods inventory
Cost of Goods Sold
accounts receivable
Accounts Payable Ledger
45. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
current liabilities
Shareholders equity
income after taxes
raw material inventory
46. Information from the sales invoice is recorded In what journal
land
current assets
sales journal
gross margin
47. 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
capital assets
long term liabilities
patents
48. Are not intended for resale
accounts receivable ledger
capital assets
outstanding deposits
drawings - capital - Income Summary - capital
49. 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
cash receipts and cash disbursements journals
capital assets
accounts receivable ledger
50. Shows how much income has been earned b the business during the time period
accounts payable and accrued expenses
depreciation expense account
income statement
net book value