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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. 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






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






3. Also know as the net book value






4. The ledgers are linked to the general ledger by this process






5. Signed by all partners in a partneship to establish rules about how the business is going to be run






6. Companies that transform raw materials into finished goods for sale






7. One is maintained for all classes of capital assets






8. This is reported after the net income on an income statement






9. Two types of share capital accounts






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






11. 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.






12. You only have to enter business data once






13. A specialized journal to systematically record all cash paid by the company to suppliers and to others - such as rent and taxes






14. Prepared by sole proprietors and partnerships






15. All daily transactions are entered through these






16. Assets that have no physical form - but have value and are an integral part of the cost of doing business






17. 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






18. What account is on the cash receipts and sales journals






19. When you proceed to reconcile your bank account you will use these two things






20. In a corporations books - the equity section is referred to as _________ ________






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






22. Calculated from adding the non operating expenses to the net income






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






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






25. What are the three versions of simply accounting






26. The process of comparing the cash plus receipts to the original balance int he account






27. What is used to reference a company's Canadian GST and HST






28. 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






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






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






31. A business that is owned by a single individual






32. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc






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






34. Calculated by subtracting the total expenses directly related to the operation of the buiness from the gross margin






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






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






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






38. A legal document giving official permission to do something






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






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






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






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






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






44. Are not intended for resale






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






46. Formula to calculate the net book value






47. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory






48. What is the formula for calculating straight-line depreciation






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






50. Documents issued by companies as evidence of transactions made