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bookkeeping level 2 terms Questions with correct Answers
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bookkeeping level 2 terms
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bookkeeping level 2 termsbookkeeping - answerthe process of recording the transactions and financial activities of
a business
invoices - answerdocuments issued by companies as evidence of transactions made
purchase invoice - answera record of a purchase made by a company, showing the
terms and conditions for payment
purchase journal - answerinformation from the purchase invoice is recorded in what
journal
sales journal - answerinformation from the sales invoice is recorded in what journal
business number - answerwhat is used to reference a company's Canadian GST and
HST
cash receipts journal - answera 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
Accounts Receivable Ledger - answerbefore entering the receipt in the cash receipts
journal, you would check the ____________ ___________ ______ for the name of the
customer and the amount owing
cash disbursements journal - answera specialized journal to systematically record all
cash paid by the company to suppliers and to others, such as rent and taxes
accounts payable - answerwhat account is on the purchases and cash disbursements
journals
Accounts Payable Ledger - answerentries involving the accounts payable account that
are made to the purchases and cash disbursements journals are then posted to the
___________ __________ __________
Accounts Payable Ledger - answerlists all vendors to whom your company has
purchases
daily - answerhow often are the accounts payable entries entered into the accounts
payable ledger
, accounts payable ledger - answerallows 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
accounts receivable - answerwhat account is on the cash receipts and sales journals
Accounts Receivable Ledger - answerentries made to the sales and cash receipts
journals involving the accounts receivable account are posted to the ______
__________ _______
accounts receivable ledger - answerlists all customers and their outstanding balances
for non cash or on account sales made
accounts receivable ledger - answerupdated daily to enable the company to determine
credit limits, give discounts on payments, and to keep up to date records of all
customers
general ledger trial balance - answerprepared once a month to ensure the general
ledger accounts are balanced before the monthly financial statements are prepared
trial balance - answereach 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
accounts receivable ledger trial balance - answerallows 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
sole proprietorship - answera business that is owned by a single individual
proprietor - answerowner of a business owned by a single individual
partnership - answera number of owners join together and create one business in which
they each own an agreed upon percentage
partnership agreement - answersigned by all partners in a partneship to establish rules
about how the business is going to be run
corporation - answera business owned by one or more individuals who are known as
shareholders
board of directors - answeroversees the management of the company/corporation
capital and drawings account - answera partnership has a separate __________ and
____________ account for each partner
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