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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. Documents issued by companies as evidence of transactions made






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






3. A legal document giving official permission to do something






4. First part of the income statement






5. 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






6. In this business there is usually one revenue account for each type of revenue earned - and there are various expense accounts where the costs of operating the business are recorded






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






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






9. 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






10. 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






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






12. Lists all vendors to whom your company has purchases






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






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






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






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






17. Owner of a business owned by a single individual






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






19. 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






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






21. 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






22. Shareholders equity contains two different types of accounts.... What are they






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






24. 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






25. Two types of share capital accounts






26. Formula to calculate the depreciation for the year






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






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






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






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






31. 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






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






33. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers






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






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






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






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






38. Calculated by subtracting sales from the cogs






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






40. Prepared by sole proprietors and partnerships






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






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






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






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






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






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






47. 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






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






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






50. A partnership has a separate __________ and ____________ account for each partner