Test your basic knowledge |

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. What is the formula for calculating straight-line depreciation






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






3. What are the three versions of simply accounting






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






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






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






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






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






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






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






11. All daily transactions are entered through these






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






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






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






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






16. Information from the purchase invoice is recorded In what journal






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






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






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






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






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






23. Lists all vendors to whom your company has purchases






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






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






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






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






28. Prepared by sole proprietors and partnerships






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






30. Calculated by subtracting sales from the cogs






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






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






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






34. Documents issued by companies as evidence of transactions made






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






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






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






38. This business does not have a purchase account and no inventory is recorded on the balance sheet






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






40. A legal document giving official permission to do something






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






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






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






44. The process of recording the transactions and financial activities of a business






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






46. Oversees the management of the company/corporation






47. Also know as the net book value






48. Formula to calculate the net book value






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






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