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. Companies that transform raw materials into finished goods for sale






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






3. 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






4. Listed on the balance sheet are assets that can be turned into cash within one year






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






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






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






8. 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






9. Information from the sales invoice is recorded In what journal






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






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






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






13. Taxes are deducted from the income before taxes total on an income statement to come up with this total...






14. A partnership has a separate __________ and ____________ account for each partner






15. Also know as the net book value






16. What account is on the cash receipts and sales journals






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






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






19. Formula to calculate the depreciation for the year






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






21. 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






22. Account maintained for small purchases






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






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






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






26. 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






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






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






29. 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






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






31. 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






32. 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






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






34. What is the formula for calculating straight-line depreciation






35. What are the three versions of simply accounting






36. A legal document giving official permission to do something






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






38. You only have to enter business data once






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. Consist of physical assets and non-physical or intangible properties






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






42. One is maintained for all classes of capital assets






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






45. A separate one is maintained for each class of capital assets






46. Prepared by sole proprietors and partnerships






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






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






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






50. All the checks that have not appeared on the bank statement