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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. Documents issued by companies as evidence of transactions made
invoices
raw material inventory
income statement
depreciation expense account
2. The ledgers are linked to the general ledger by this process
retained earnings account
petty cash account
proprietor
integration
3. Shareholders equity contains two different types of accounts.... What are they
Shareholders equity
reconciling the petty cash account
long term liabilities
Share capital accounts - retained earnings
4. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset
land
depreciation
statement of owners equity
accounts payable and accrued expenses
5. What account is on the purchases and cash disbursements journals
Accounts payable
accounts receivable ledger
capital assets
board of directors
6. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
(cost of capital asset - residual value) / (expected useful life of capital asset)
trademarks
straight line depreciation
petty cash account
7. The two start up methods on simply accountin through the set up wizard
declining balance method
Shareholders equity
drawings - capital - Income Summary - capital
express or custom
8. Oversees the management of the company/corporation
board of directors
goodwill
net value
basic - pro - premium
9. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years
net income
declining balance method
bank reconciliation statement
manufacturing organizations
10. Lists all customers and their outstanding balances for non cash or on account sales made
proprietor
sales journal
accounts receivable ledger
accounts receivable
11. Shows how much income has been earned b the business during the time period
capital assets
income statement
outstanding checks
Accounts Payable Ledger
12. Owner of a business owned by a single individual
land
proprietor
drawings account
business number
13. Used to write off the cost of an intangible capital asset
amortization
capital assets
intangible capital assets
raw material inventory
14. Deposits that have not yet been deposited in the bank account
goodwill
capital assets
outstanding deposits
income tax expenses - income tax payable
15. The process of recording the transactions and financial activities of a business
sole proprietorship
goodwill
income before taxes
bookkeeping
16. 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
service company
Shareholders equity
depreciation = net book value * %
cash receipts journal
17. 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.
work in process inventory
accounts receivable ledger
Shareholders equity
land
18. What is used to reference a company's Canadian GST and HST
bookkeeping
statement of retained earnings
business number
long term liabilities
19. 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
trademarks
net book value = original cost of asset - accumulated depreciation`
accounts receivable ledger
land
20. Two types of share capital accounts
board of directors
raw material inventory
intangible capital assets
common share accounts - preferred share accounts
21. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
Sales
board of directors
Accounts Payable Ledger
depreciation expense account
22. You only have to enter business data once
sole proprietorship
Accounts Payable Ledger
net income
integrated
23. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
patents
sales journal
accounts payable ledger
intangible capital assets
24. One is maintained for all classes of capital assets
sole proprietorship
income after taxes
partnership agreement
depreciation expense account
25. A number of owners join together and create one business in which they each own an agreed upon percentage
long term liabilities
amortization
partnership
cash disbursements journal
26. Who makes the decision on the amount to keep in the petty cash account
invoices
management
Sales
depreciation = net book value * %
27. Calculated by subtracting sales from the cogs
net book value
Accounts Payable Ledger
manufacturing organizations
gross margin
28. 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
Share capital accounts - retained earnings
invoices
raw material inventory
bank reconciliation statement
29. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
corporation
Accounts Receivable Ledger
general ledger trial balance
service business
30. The process of comparing the cash plus receipts to the original balance int he account
purchase journal
current liabilities
petty cash record
reconciling the petty cash account
31. 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
cash receipts and cash disbursements journals
Accounts payable
accounts receivable ledger
drawings - capital - Income Summary - capital
32. Formula to calculate the net book value
net book value = original cost of asset - accumulated depreciation`
partnership
petty cash record
statement of retained earnings
33. Formula to calculate the depreciation for the year
capital and drawings account
bank reconciliation statement
depreciation = net book value * %
purchase journal
34. Consist of physical assets and non-physical or intangible properties
land
bank reconciliation statement
integration
capital assets
35. 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
service business
general ledger trial balance
capital and drawings account
depreciation = net book value * %
36. Assets that have no physical form - but have value and are an integral part of the cost of doing business
Accounts Receivable Ledger
licenses
corporation
intangible capital assets
37. When a merchandising business prepares its income statement it includes a section called.....
modules
Cost of Goods Sold
purchase invoice
balance sheet
38. All the checks that have not appeared on the bank statement
income before taxes
outstanding deposits
outstanding checks
management
39. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
service business
sole proprietorship
accounts receivable ledger
current assets
40. 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
accounts receivable ledger trial balance
net value
drawings - capital - Income Summary - capital
finished goods inventory
41. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
net book value = original cost of asset - accumulated depreciation`
Cost of Goods Sold
accounts receivable ledger trial balance
(cost of capital asset - residual value) / (expected useful life of capital asset)
42. A business that is owned by a single individual
licenses
retained earnings account
retained earnings account
sole proprietorship
43. Includes the costs of all goods that are complete and ready for sale
cash receipts and cash disbursements journals
intangible capital assets
finished goods inventory
depreciation = net book value * %
44. What account is on the cash receipts and sales journals
licenses
accounts receivable
manufacturing organizations
proprietor
45. Includes all debt that is due in more than one year
outstanding deposits
long term liabilities
bank reconciliation statement
daily
46. Information from the sales invoice is recorded In what journal
intangible capital assets
Shareholders equity
express or custom
sales journal
47. This is reported after the net income on an income statement
Accounts Payable Ledger
management
accounts receivable ledger
non-operating income
48. Companies that transform raw materials into finished goods for sale
accounts payable and accrued expenses
business number
capital assets
manufacturing organizations
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
common share accounts - preferred share accounts
bank reconciliation statement
capital account
straight line depreciation
50. A record of a purchase made by a company - showing the terms and conditions for payment
Accounts Payable Ledger
non-operating income
Sales
purchase invoice