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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 number of owners join together and create one business in which they each own an agreed upon percentage
partnership
current assets
Share capital accounts - retained earnings
drawings account
2. Documents issued by companies as evidence of transactions made
basic - pro - premium
invoices
sales journal
accounts payable and accrued expenses
3. 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
accounts receivable ledger
business number
intangible capital assets
4. Shows how much income has been earned b the business during the time period
bank reconciliation statement
income statement
business number
accounts receivable
5. First part of the income statement
work in process inventory
income after taxes
Sales
business number
6. 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
bank reconciliation statement
sales journal
statement of retained earnings
capital assets
7. In a corporations books - the equity section is referred to as _________ ________
sole proprietorship
service business
Shareholders equity
drawings - capital - Income Summary - capital
8. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
trademarks
modules
Accounts Receivable Ledger
accounts receivable
9. 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.
petty cash record
partnership
work in process inventory
amortization
10. Must have a useful life of more than one year
net book value
capital assets
finished goods inventory
basic - pro - premium
11. Owner of a business owned by a single individual
Accounts payable
proprietor
cash receipts journal
common share accounts - preferred share accounts
12. The process of comparing the cash plus receipts to the original balance int he account
accounts payable and accrued expenses
petty cash record
reconciling the petty cash account
purchase journal
13. 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
board of directors
capital and drawings account
Sales
14. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
Share capital accounts - retained earnings
straight line depreciation
outstanding deposits
general ledger trial balance
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
merchandising business
proprietor
intangible capital assets
accounts payable ledger
16. A business that offers services to the public
service company
land
capital assets
common share accounts - preferred share accounts
17. Represents the expected value of the asset at the end of its useful life to the business
residual value
capital assets
bookkeeping
capital assets
18. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory
accounts payable ledger
straight line depreciation
Cost of Goods Sold
non-operating income
19. All the checks that have not appeared on the bank statement
patents
outstanding checks
amortization
bank reconciliation statement
20. Deposits that have not yet been deposited in the bank account
land
sales journal
integrated
outstanding deposits
21. 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
goodwill
accumulated depreciation account
reconciling the petty cash account
net value
22. 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
gross margin
accounts payable ledger
land
partnership
23. The process of recording the transactions and financial activities of a business
straight line depreciation
income statement
bookkeeping
service business
24. Two types of share capital accounts
earnings before interest and taxes
common share accounts - preferred share accounts
trial balance
accounts payable ledger
25. Entries involving the accounts payable account that are made to the purchases and cash disbursements journals are then posted to the ___________ __________ __________
Accounts Payable Ledger
proprietor
finished goods inventory
Sales
26. Must be held for use in the production of goods and/or services
retained earnings account
capital assets
invoices
depreciation = net book value * %
27. Calculated from adding the non operating expenses to the net income
income before taxes
Cost of Goods Sold
accounts payable and accrued expenses
express or custom
28. Companies that transform raw materials into finished goods for sale
manufacturing organizations
daily
declining balance method
land
29. Account used to record the net income that is retained in the business at the end of the year
land
drawings account
Share capital accounts - retained earnings
retained earnings account
30. When you proceed to reconcile your bank account you will use these two things
integrated
net book value
cash receipts and cash disbursements journals
balance sheet
31. This is reported after the net income on an income statement
intangible capital assets
current liabilities
non-operating income
business number
32. Shareholders equity contains two different types of accounts.... What are they
Income Summary - revenue - expense - capital
common share accounts - preferred share accounts
Share capital accounts - retained earnings
retained earnings account
33. What are the three versions of simply accounting
proprietor
basic - pro - premium
income tax expenses - income tax payable
service business
34. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
capital assets
declining balance method
gross margin
income tax expenses - income tax payable
35. Information from the sales invoice is recorded In what journal
modules
basic - pro - premium
sales journal
earnings before interest and taxes
36. A partnership has a separate __________ and ____________ account for each partner
capital and drawings account
drawings account
cash receipts and cash disbursements journals
declining balance method
37. A record of a purchase made by a company - showing the terms and conditions for payment
accumulated depreciation account
purchase invoice
Income Summary - revenue - expense - capital
land
38. Lists all customers and their outstanding balances for non cash or on account sales made
accounts receivable ledger
general ledger trial balance
bookkeeping
capital assets
39. 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
amortization
trial balance
intangible capital assets
net income
40. Prepared by sole proprietors and partnerships
accounts receivable
partnership
statement of owners equity
depreciation expense account
41. Consist of physical assets and non-physical or intangible properties
capital assets
service business
board of directors
outstanding deposits
42. 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
corporation
cash receipts journal
accounts receivable ledger trial balance
accounts receivable ledger
43. A business owned by one or more individuals who are known as shareholders
cash receipts journal
retained earnings account
Cost of Goods Sold
corporation
44. Net income is also known as this on an income statement
statement of retained earnings
earnings before interest and taxes
general ledger trial balance
balance sheet
45. One is maintained for all classes of capital assets
Sales
proprietor
non-operating income
depreciation expense account
46. Used to write off the cost of an intangible capital asset
capital assets
amortization
accounts payable ledger
Cost of Goods Sold
47. What account is on the purchases and cash disbursements journals
corporation
goodwill
express or custom
Accounts payable
48. Taxes are deducted from the income before taxes total on an income statement to come up with this total...
long term liabilities
Accounts Receivable Ledger
current assets
income after taxes
49. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
invoices
Cost of Goods Sold
capital and drawings account
accounts receivable ledger
50. The ledgers are linked to the general ledger by this process
drawings - capital - Income Summary - capital
integrated
integration
current assets