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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. 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






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






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






4. Documents issued by companies as evidence of transactions made






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






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






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






8. 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






9. What are the three versions of simply accounting






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






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






13. Prepared once a month to ensure the general ledger accounts are balanced before the monthly financial statements are prepared






14. 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






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






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






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






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






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






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






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






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






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






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






25. 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.






26. Formula to calculate the depreciation for the year






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






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






29. Are not intended for resale






30. Lists all vendors to whom your company has purchases






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






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






33. Formula to calculate the net book value






34. In a corporations books - the equity section is referred to as _________ ________






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






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






37. Owner of a business owned by a single individual






38. 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






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






40. Account maintained for small purchases






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






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






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






44. 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






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






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






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






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






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






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