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






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






3. Calculated by adding the opening inventory - the net purchases and then subtracting the ending inventory






4. First part of the income statement






5. Listed on the balance sheet are assets that can be turned into cash within one year






6. Calculated by subtracting sales from the cogs






7. An accelerated depreciation method becuase it calculates more depreciation in the early years and less in the later years






8. Oversees the management of the company/corporation






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






10. Represents the expected value of the asset at the end of its useful life to the business






11. Also know as the net book value






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






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






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






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






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






17. Account maintained for small purchases






18. All daily transactions are entered through these






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






20. 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






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






22. Documents issued by companies as evidence of transactions made






23. Information from the sales invoice is recorded In what journal






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






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






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






27. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset






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






29. Lists all customers and their outstanding balances for non cash or on account sales made






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






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






32. A record of a purchase made by a company - showing the terms and conditions for payment






33. You only have to enter business data once






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






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






36. 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






37. 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.






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






39. 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






40. Deposits that have not yet been deposited in the bank account






41. Consist of physical assets and non-physical or intangible properties






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






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






44. 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






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






46. When you proceed to reconcile your bank account you will use these two things






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






48. Amounts owed by the company that are due within one year of the balance sheet date






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






50. 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