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






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






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






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






5. Are not intended for resale






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






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






8. Deposits that have not yet been deposited in the bank account






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






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






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






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






13. A business that offers services to the public






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






15. 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






16. 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






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






18. Lists all vendors to whom your company has purchases






19. 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






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






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






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






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






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






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






27. What are the three versions of simply accounting






28. All daily transactions are entered through these






29. 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






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






31. Also know as the net book value






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






33. Two types of share capital accounts






34. 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






35. You only have to enter business data once






36. 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






37. Owner of a business owned by a single individual






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






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






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






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






42. Calculated by subtracting sales from the cogs






43. Account maintained for small purchases






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






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






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






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






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






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






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