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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. A business owned by one or more individuals who are known as shareholders
accumulated depreciation account
balance sheet
express or custom
corporation
2. 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
cash receipts journal
land
income before taxes
outstanding checks
3. Formula to calculate the depreciation for the year
depreciation = net book value * %
outstanding deposits
net value
Accounts Payable Ledger
4. Companies that transform raw materials into finished goods for sale
accounts receivable ledger trial balance
capital and drawings account
manufacturing organizations
bookkeeping
5. When a merchandising business prepares its income statement it includes a section called.....
net book value = original cost of asset - accumulated depreciation`
Cost of Goods Sold
retained earnings account
gross margin
6. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
capital account
net book value
capital assets
net book value = original cost of asset - accumulated depreciation`
7. Owner of a business owned by a single individual
bank reconciliation statement
proprietor
general ledger trial balance
capital assets
8. First part of the income statement
modules
statement of retained earnings
Income Summary - revenue - expense - capital
Sales
9. 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
service business
Accounts Payable Ledger
Share capital accounts - retained earnings
10. 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
amortization
patents
land
accounts payable and accrued expenses
11. 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
Accounts Receivable Ledger
depreciation
residual value
12. All daily transactions are entered through these
daily
gross margin
modules
finished goods inventory
13. The ledgers are linked to the general ledger by this process
integration
retained earnings account
Accounts payable
income statement
14. Amounts owed by the company that are due within one year of the balance sheet date
gross margin
trademarks
capital assets
current liabilities
15. 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
accounts payable ledger
depreciation expense account
work in process inventory
accounts receivable
16. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
straight line depreciation
general ledger trial balance
outstanding deposits
Shareholders equity
17. The two start up methods on simply accountin through the set up wizard
trial balance
express or custom
capital and drawings account
Cost of Goods Sold
18. In a corporations books - the equity section is referred to as _________ ________
cash receipts journal
general ledger trial balance
Shareholders equity
income after taxes
19. Lists all vendors to whom your company has purchases
Accounts Payable Ledger
Shareholders equity
net book value
depreciation = net book value * %
20. Net income is also known as this on an income statement
sales journal
earnings before interest and taxes
outstanding checks
accumulated depreciation account
21. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
common share accounts - preferred share accounts
Accounts Payable Ledger
bank reconciliation statement
cash receipts and cash disbursements journals
22. All the checks that have not appeared on the bank statement
outstanding checks
drawings - capital - Income Summary - capital
residual value
earnings before interest and taxes
23. Calculated by subtracting sales from the cogs
bookkeeping
licenses
gross margin
capital assets
24. Must be held for use in the production of goods and/or services
non-operating income
Cost of Goods Sold
daily
capital assets
25. Oversees the management of the company/corporation
purchase invoice
board of directors
petty cash account
(cost of capital asset - residual value) / (expected useful life of capital asset)
26. 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
trial balance
partnership
capital assets
statement of retained earnings
27. Shows how much income has been earned b the business during the time period
income statement
purchase invoice
sole proprietorship
depreciation = net book value * %
28. Formula to calculate the net book value
net book value = original cost of asset - accumulated depreciation`
income tax expenses - income tax payable
licenses
raw material inventory
29. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
goodwill
capital assets
retained earnings account
statement of retained earnings
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
business number
capital assets
land
31. Includes the costs of all goods that are complete and ready for sale
bookkeeping
accounts receivable ledger
finished goods inventory
licenses
32. Are not intended for resale
outstanding deposits
capital assets
net book value
depreciation
33. An account that represents the amount of owners' equity for each patner; profits are allocated to this account as specified in the partnership agreement
accounts payable ledger
trial balance
net book value
capital account
34. Signed by all partners in a partneship to establish rules about how the business is going to be run
declining balance method
partnership agreement
current liabilities
capital assets
35. Prepared for each bank account - each month - to allow companies to verify that the company's bank account is accurate and all the items on the Statement of Account belong to the company and are reflected in the company records
service company
bank reconciliation statement
statement of owners equity
accounts receivable ledger
36. 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.
capital assets
trial balance
sole proprietorship
work in process inventory
37. What is the formula for calculating straight-line depreciation
trademarks
cash receipts and cash disbursements journals
(cost of capital asset - residual value) / (expected useful life of capital asset)
general ledger trial balance
38. How often are the accounts payable entries entered into the accounts payable ledger
outstanding deposits
daily
Accounts payable
accumulated depreciation account
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
current assets
common share accounts - preferred share accounts
daily
trademarks
40. Lists all customers and their outstanding balances for non cash or on account sales made
accounts receivable ledger
management
invoices
net book value
41. One is maintained for all classes of capital assets
general ledger trial balance
depreciation expense account
income statement
invoices
42. 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
(cost of capital asset - residual value) / (expected useful life of capital asset)
accounts payable and accrued expenses
depreciation expense account
raw material inventory
43. Consist of physical assets and non-physical or intangible properties
land
Cost of Goods Sold
capital assets
non-operating income
44. When you proceed to reconcile your bank account you will use these two things
bookkeeping
cash receipts and cash disbursements journals
declining balance method
capital assets
45. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
income statement
net book value = original cost of asset - accumulated depreciation`
income after taxes
common share accounts - preferred share accounts
46. Prepared by sole proprietors and partnerships
board of directors
statement of owners equity
income after taxes
land
47. A business that offers services to the public
accounts receivable ledger
partnership
partnership agreement
service company
48. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
outstanding checks
modules
petty cash record
net income
49. This business purchases products from its vendors for resale to its customers
goodwill
merchandising business
Accounts Receivable Ledger
gross margin
50. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
patents
licenses
land
Cost of Goods Sold