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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. Also know as the net book value






2. 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






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






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






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






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






7. 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






8. A legal document giving official permission to do something






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






10. When you proceed to reconcile your bank account you will use these two things






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






12. A business that offers services to the public






13. Owner of a business owned by a single individual






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






15. Lists all vendors to whom your company has purchases






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






17. Formula to calculate the net book value






18. All daily transactions are entered through these






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






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






21. A business that is owned by a single individual






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






23. 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






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






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






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






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






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






29. Formula to calculate the depreciation for the year






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






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






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






33. A business owned by one or more individuals who are known as shareholders






34. 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






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






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






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






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






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






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






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






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






44. Prepared by sole proprietors and partnerships






45. 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






46. What are the three versions of simply accounting






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






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






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






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