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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. Owner of a business owned by a single individual






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






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






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






5. Account maintained for small purchases






6. Documents issued by companies as evidence of transactions made






7. Calculated by subtracting sales from the cogs






8. 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






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






10. 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






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






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






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






14. One is maintained for all classes of capital assets






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






16. Prepared by sole proprietors and partnerships






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






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






19. All daily transactions are entered through these






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






21. A business that offers services to the public






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






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






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






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






26. 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






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






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






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






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. 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






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






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






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






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






37. What are the three versions of simply accounting






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






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






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






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






42. A number of owners join together and create one business in which they each own an agreed upon percentage






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






44. A business that is owned by a single individual






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






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






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






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






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






50. A legal document giving official permission to do something