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Test your basic knowledge |
Bookkeeping Advanced Vocab
Start Test
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. What is the formula for calculating straight-line depreciation
(cost of capital asset - residual value) / (expected useful life of capital asset)
daily
land
net income
2. A list of all the disbursements made from your petty cash in the box with the receipts and the cash
partnership agreement
net income
petty cash record
accounts receivable ledger
3. What are the three versions of simply accounting
daily
amortization
depreciation = net book value * %
basic - pro - premium
4. 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
Sales
accounts receivable
income after taxes
5. Must have a useful life of more than one year
manufacturing organizations
land
statement of retained earnings
capital assets
6. 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
Accounts Payable Ledger
cash receipts journal
land
purchase journal
7. Account is reduced by the value of dividends paid to the shareholder
retained earnings account
service business
purchase invoice
finished goods inventory
8. Prepared by corporations - similar to a statement of owners equity
statement of retained earnings
depreciation expense account
accounts receivable ledger
management
9. Before entering the receipt in the cash receipts journal - you would check the ____________ ___________ ______ for the name of the customer and the amount owing
Accounts Receivable Ledger
depreciation expense account
service company
net book value = original cost of asset - accumulated depreciation`
10. 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
basic - pro - premium
statement of owners equity
bank reconciliation statement
accounts receivable ledger
11. All daily transactions are entered through these
capital assets
modules
Shareholders equity
capital assets
12. A number of owners join together and create one business in which they each own an agreed upon percentage
statement of owners equity
Income Summary - revenue - expense - capital
partnership
capital assets
13. Shows how much income has been earned b the business during the time period
accumulated depreciation account
merchandising business
daily
income statement
14. This is reported after the net income on an income statement
work in process inventory
non-operating income
statement of owners equity
sales journal
15. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
income statement
statement of owners equity
manufacturing organizations
Accounts Receivable Ledger
16. Information from the purchase invoice is recorded In what journal
service business
accounts receivable ledger
(cost of capital asset - residual value) / (expected useful life of capital asset)
purchase journal
17. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
Income Summary - revenue - expense - capital
outstanding checks
drawings account
non-operating income
18. Who makes the decision on the amount to keep in the petty cash account
management
depreciation
board of directors
capital assets
19. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
retained earnings account
straight line depreciation
current assets
outstanding checks
20. What account is on the purchases and cash disbursements journals
land
service business
Accounts payable
net value
21. Account used to record the net income that is retained in the business at the end of the year
board of directors
bank reconciliation statement
retained earnings account
accumulated depreciation account
22. How often are the accounts payable entries entered into the accounts payable ledger
accounts payable and accrued expenses
net income
management
daily
23. Lists all vendors to whom your company has purchases
statement of owners equity
raw material inventory
Accounts Payable Ledger
amortization
24. Signed by all partners in a partneship to establish rules about how the business is going to be run
partnership agreement
raw material inventory
net book value
integration
25. When a merchandising business prepares its income statement it includes a section called.....
integrated
merchandising business
Cost of Goods Sold
capital assets
26. 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
manufacturing organizations
cash receipts journal
depreciation
residual value
27. 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
land
drawings account
accumulated depreciation account
(cost of capital asset - residual value) / (expected useful life of capital asset)
28. Prepared by sole proprietors and partnerships
capital assets
statement of owners equity
Cost of Goods Sold
land
29. This business purchases products from its vendors for resale to its customers
merchandising business
land
Shareholders equity
net income
30. Calculated by subtracting sales from the cogs
work in process inventory
gross margin
land
express or custom
31. The ledgers are linked to the general ledger by this process
capital assets
integration
Accounts Payable Ledger
depreciation = net book value * %
32. The process of comparing the cash plus receipts to the original balance int he account
long term liabilities
non-operating income
bookkeeping
reconciling the petty cash account
33. Net income is also known as this on an income statement
earnings before interest and taxes
capital assets
retained earnings account
capital assets
34. Documents issued by companies as evidence of transactions made
accounts receivable ledger
licenses
invoices
business number
35. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc
statement of owners equity
Sales
raw material inventory
finished goods inventory
36. Represents the expected value of the asset at the end of its useful life to the business
residual value
Sales
board of directors
(cost of capital asset - residual value) / (expected useful life of capital asset)
37. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
patents
raw material inventory
sales journal
statement of retained earnings
38. This business does not have a purchase account and no inventory is recorded on the balance sheet
proprietor
finished goods inventory
service business
partnership agreement
39. What is used to reference a company's Canadian GST and HST
balance sheet
Income Summary - revenue - expense - capital
business number
capital account
40. A legal document giving official permission to do something
net value
finished goods inventory
licenses
capital assets
41. Companies that transform raw materials into finished goods for sale
common share accounts - preferred share accounts
land
manufacturing organizations
finished goods inventory
42. 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 and accrued expenses
sales journal
accounts payable ledger
retained earnings account
43. Lists all customers and their outstanding balances for non cash or on account sales made
general ledger trial balance
work in process inventory
accounts receivable
accounts receivable ledger
44. The process of recording the transactions and financial activities of a business
residual value
bookkeeping
accounts payable ledger
manufacturing organizations
45. A record of a purchase made by a company - showing the terms and conditions for payment
purchase invoice
service company
integration
net income
46. Oversees the management of the company/corporation
depreciation
Sales
board of directors
capital assets
47. Also know as the net book value
Accounts Receivable Ledger
capital assets
net value
income before taxes
48. Formula to calculate the net book value
management
work in process inventory
goodwill
net book value = original cost of asset - accumulated depreciation`
49. 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
accounts payable and accrued expenses
depreciation
statement of owners equity
general ledger trial balance
50. The two start up methods on simply accountin through the set up wizard
express or custom
depreciation = net book value * %
net book value = original cost of asset - accumulated depreciation`
service business