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






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






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






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






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






6. 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






7. You only have to enter business data once






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






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






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






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






12. 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






13. Must be held for use in the production of goods and/or services






14. 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.






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






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






17. 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






18. 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






19. Documents issued by companies as evidence of transactions made






20. Shows how much income has been earned b the business during the time period






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






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






23. 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






24. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






26. All daily transactions are entered through these






27. It is possible for a balance sheet to be off a few dollars due to rounding - if this happens you would adjust any difference through these two accounts






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






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






30. A business that is owned by a single individual






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






32. Lists all vendors to whom your company has purchases






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






34. Lists all customers and their outstanding balances for non cash or on account sales made






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






36. Net income is also known as this on an income statement






37. Calculated by subtracting sales from the cogs






38. Account maintained for small purchases






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






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






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






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






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






44. A business that offers services to the public






45. When a merchandising business prepares its income statement it includes a section called.....






46. Prepared by corporations - similar to a statement of owners equity






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






48. 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






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






50. 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