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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. Lists all vendors to whom your company has purchases
land
modules
Accounts Payable Ledger
integration
2. Is arrived at by subtracting the accumulated depreciation recorded on the asset (to date) from the original cost of the asset
retained earnings account
net book value
Income Summary - revenue - expense - capital
net income
3. Includes the costs of all goods that are complete and ready for sale
invoices
capital assets
net book value = original cost of asset - accumulated depreciation`
finished goods inventory
4. Shareholders equity contains two different types of accounts.... What are they
income tax expenses - income tax payable
Share capital accounts - retained earnings
service business
retained earnings account
5. The process of comparing the cash plus receipts to the original balance int he account
reconciling the petty cash account
basic - pro - premium
petty cash account
long term liabilities
6. Signed by all partners in a partneship to establish rules about how the business is going to be run
retained earnings account
drawings account
invoices
partnership agreement
7. The two start up methods on simply accountin through the set up wizard
express or custom
depreciation expense account
depreciation = net book value * %
proprietor
8. 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
cash receipts and cash disbursements journals
trial balance
income tax expenses - income tax payable
straight line depreciation
9. Information from the purchase invoice is recorded In what journal
long term liabilities
bank reconciliation statement
purchase journal
statement of retained earnings
10. 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
service business
invoices
depreciation = net book value * %
straight line depreciation
11. A record of a purchase made by a company - showing the terms and conditions for payment
Accounts Receivable Ledger
purchase invoice
work in process inventory
retained earnings account
12. 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
current liabilities
business number
goodwill
capital account
13. Assets that have no physical form - but have value and are an integral part of the cost of doing business
current liabilities
Income Summary - revenue - expense - capital
gross margin
intangible capital assets
14. What are the three versions of simply accounting
non-operating income
raw material inventory
intangible capital assets
basic - pro - premium
15. Documents issued by companies as evidence of transactions made
invoices
depreciation expense account
Sales
non-operating income
16. Information from the sales invoice is recorded In what journal
sales journal
board of directors
proprietor
net book value = original cost of asset - accumulated depreciation`
17. Also know as the net book value
capital account
licenses
net value
raw material inventory
18. Includes all debt that is due in more than one year
Accounts Receivable Ledger
long term liabilities
statement of owners equity
gross margin
19. Must have a useful life of more than one year
statement of owners equity
capital assets
invoices
non-operating income
20. One is maintained for all classes of capital assets
depreciation expense account
service company
petty cash account
statement of retained earnings
21. The process of recording the transactions and financial activities of a business
statement of owners equity
bookkeeping
retained earnings account
capital assets
22. 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.
work in process inventory
reconciling the petty cash account
sales journal
current assets
23. This business does not have a purchase account and no inventory is recorded on the balance sheet
accounts receivable ledger
service business
current assets
cash receipts journal
24. 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
net book value = original cost of asset - accumulated depreciation`
capital assets
income tax expenses - income tax payable
trademarks
25. 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
net value
income after taxes
land
partnership
26. Shows how much income has been earned b the business during the time period
income statement
service business
net book value = original cost of asset - accumulated depreciation`
depreciation
27. A grant by the government to an inventor of the right to exclude others from making - using or selling his or her invention
patents
intangible capital assets
land
integration
28. Lists all customers and their outstanding balances for non cash or on account sales made
Shareholders equity
accounts receivable ledger
Accounts payable
retained earnings account
29. Prepared by sole proprietors and partnerships
statement of owners equity
income before taxes
basic - pro - premium
trademarks
30. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared
Accounts Payable Ledger
gross margin
general ledger trial balance
Accounts Receivable Ledger
31. Entries made to the sales and cash receipts journals involving the accounts receivable account are posted to the ______ __________ _______
land
service business
board of directors
Accounts Receivable Ledger
32. 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
accounts payable ledger
Income Summary - revenue - expense - capital
Accounts Receivable Ledger
common share accounts - preferred share accounts
33. 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
land
net book value = original cost of asset - accumulated depreciation`
retained earnings account
straight line depreciation
34. What account is on the purchases and cash disbursements journals
net income
merchandising business
service business
Accounts payable
35. 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
cash receipts journal
accounts payable and accrued expenses
trial balance
sole proprietorship
36. Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement
Shareholders equity
accounts receivable ledger
drawings account
declining balance method
37. Account used to record the net income that is retained in the business at the end of the year
Share capital accounts - retained earnings
partnership agreement
depreciation expense account
retained earnings account
38. What is used to reference a company's Canadian GST and HST
balance sheet
business number
raw material inventory
Share capital accounts - retained earnings
39. Owner of a business owned by a single individual
proprietor
licenses
Accounts Receivable Ledger
accounts receivable ledger
40. What account is on the cash receipts and sales journals
land
modules
non-operating income
accounts receivable
41. Owned by the company - purchased with the intent of using them to earn income and are not intended for resale
land
capital and drawings account
common share accounts - preferred share accounts
capital assets
42. Updated daily to enable the company to determine credit limits - give discounts on payments - and to keep up to date records of all customers
accounts receivable ledger
intangible capital assets
business number
common share accounts - preferred share accounts
43. A business that offers services to the public
service company
capital assets
accounts receivable ledger
goodwill
44. Used to write off the cost of an intangible capital asset
long term liabilities
invoices
amortization
Accounts Receivable Ledger
45. Who makes the decision on the amount to keep in the petty cash account
general ledger trial balance
management
Cost of Goods Sold
income before taxes
46. As a rule these should always be recorded on the balance sheet at cost
cash receipts journal
statement of owners equity
balance sheet
capital assets
47. When a merchandising business prepares its income statement it includes a section called.....
accounts payable ledger
purchase journal
Cost of Goods Sold
retained earnings account
48. The method of writing off the cost of capital assets by assigning an equal charge to revenue over the estimated life of the asset
straight line depreciation
depreciation expense account
income before taxes
outstanding deposits
49. Companies that transform raw materials into finished goods for sale
amortization
manufacturing organizations
licenses
retained earnings account
50. Represents the assets on hand - the liabilities owed and the owners equity
income tax expenses - income tax payable
balance sheet
sales journal
proprietor