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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. You only have to enter business data once






2. This business purchases products from its vendors for resale to its customers






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






4. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax






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






6. What are the three versions of simply accounting






7. Represents the assets on hand - the liabilities owed and the owners equity






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






9. 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






10. Account is reduced by the value of dividends paid to the shareholder






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






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






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






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






15. Account maintained for small purchases






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






17. Formula to calculate the net book value






18. A legal document giving official permission to do something






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






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






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






22. 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






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






24. When a merchandising business prepares its income statement it includes a section called.....






25. Includes the costs of all goods that are complete and ready for sale






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






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






28. Lists all vendors to whom your company has purchases






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






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






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






32. Assets that have no physical form - but have value and are an integral part of the cost of doing business






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






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






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






36. Are not intended for resale






37. 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






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






39. 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.






40. 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






41. Two types of share capital accounts






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






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






44. Must be held for use in the production of goods and/or services






45. Used to write off the cost of a tangible capital asset over the anticipated useful life of that asset






46. Formula to calculate the depreciation for the year






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






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






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






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