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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. Companies that transform raw materials into finished goods for sale






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






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






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






5. Documents issued by companies as evidence of transactions made






6. 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






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






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






9. Are not intended for resale






10. 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






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






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






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






14. Owner of a business owned by a single individual






15. A legal document giving official permission to do something






16. You only have to enter business data once






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






18. 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.






19. A business that offers services to the public






20. Lists all vendors to whom your company has purchases






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






22. 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






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






24. 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






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






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






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






28. Used to write off the cost of an intangible capital asset






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






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






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






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






33. 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






34. 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






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






36. 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






37. A list of all the disbursements made from your petty cash in the box with the receipts and the cash






38. Prepared by sole proprietors and partnerships






39. 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






40. Two types of share capital accounts






41. Includes the cost of various items used to produce the goods made by the manufacturing organization such as screws - nails - wood - iron - etc






42. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






44. 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






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






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






47. Who makes the decision on the amount to keep in the petty cash account






48. 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






49. First part of the income statement






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







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