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






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






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






4. Formula to calculate the net book value






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






6. Documents issued by companies as evidence of transactions made






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






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






9. 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






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






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






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






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






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






15. The corporation has an account called _______ ______ _____ on its Income Statement and an _____ ______ ______ account on its Balance Sheet to record the accrual of income tax






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






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






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






19. A business that offers services to the public






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






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






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






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 Account used to record amounts withdrawn by each partner; there may be limitations based on the partnership agreement






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






25. 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






26. What are the three versions of simply accounting






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






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






29. Also know as the net book value






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






31. Oversees the management of the company/corporation






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






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






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






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






36. Prepared by sole proprietors and partnerships






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






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






39. A legal document giving official permission to do something






40. Represents the assets on hand - the liabilities owed and the owners equity






41. 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






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






43. Are not intended for resale






44. 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






45. 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






46. At the end of the year - the bookkeeper will close each partner's __________ account to his/her _______ account and allocate each partner's share of the net income or loss in the business from the _________ ________ Account to his/her ________ accoun






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






48. 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






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






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