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






2. Allows companies to see patterns of negligence and shows where the company should take action to collect accounts that are overdue - also enables the company to create an allowance for bad and doubtful accounts whenpreparing the financial statements






3. You only have to enter business data once






4. Used to write off the cost of an intangible capital asset






5. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset






6. What are the three versions of simply accounting






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






8. A list of all the disbursements made from your petty cash in the box with the receipts and the cash






9. Prepared by sole proprietors and partnerships






10. Information from the purchase invoice is recorded In what journal






11. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________






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






13. 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






14. Taxes are deducted from the income before taxes total on an income statement to come up with this total...






15. A separate one is maintained for each class of capital assets






16. A business that offers services to the public






17. 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






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






19. All the checks that have not appeared on the bank statement






20. Who makes the decision on the amount to keep in the petty cash account






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






22. All daily transactions are entered through these






23. 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






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 cash receipts and sales journals






26. The two start up methods on simply accountin through the set up wizard






27. Account used to record the net income that is retained in the business at the end of the year






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






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






30. Account maintained for small purchases






31. Are not intended for resale






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






33. Oversees the management of the company/corporation






34. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared






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






36. First part of the income statement






37. A legal document giving official permission to do something






38. Lists all vendors to whom your company has purchases






39. 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






40. Owner of a business owned by a single individual






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






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






43. Calculated by subtracting sales from the cogs






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






45. Includes the costs of all goods that are complete and ready for sale






46. A number of owners join together and create one business in which they each own an agreed upon percentage






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






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






49. 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






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