Test your basic knowledge |

CLEP Financial Accounting

Subjects : clep, 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. Revenues - Expenses






2. Accounting periods of less than a year.






3. Forces a monetary value to a business transaction and accounting for the assets and liabilities that result from the transaction.






4. The amount allocated to any one accounting period.






5. A temporary account that summarizes all revenues and expenses for the period.






6. Selling goods and services to customers - employing managers and workers.






7. The net amount - or 'Book Value' of an asset






8. A 12 month accounting period (Vary depending on slack seasons)






9. Common Stock + Retained Earnings - Dividends + Revenues - Expenses

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


10. International Accounting Standards Board.






11. As an expense and the corresponding liability accumulate.






12. Unless there is evidence to the contrary - the accountant assumed that the business will continue to operate indefinitely






13. Cash account






14. Lists all accounts and their balances






15. Their related asset accounts on the balance sheet






16. Payments received in advance - and deposits made on goods and services






17. Used to accumulate the depreciation on each long-term asset






18. Net income on the income statement - and profitability comparisons from one accounting period to the next.






19. Accounting Equation






20. Focuses on assigning a monetary value to a business transaction and accounting for assets and liabilities.






21. Deferral of an expense! (Except land)






22. When an entity sends out a product to a distributor and takes a certain percentage for what they sell it for (Usually occurs when they have excess inventory)






23. Financial Accounting Standards Board - Designed by SEC to develop rules on accounting practice.






24. Revenues that a company has earned but for which no entry has been made in the accounting records






25. Balance sheet accounts - such as cash and accounts payable because they carry their end-of-period balances into the next accounting period






26. Increases






27. Wages - Interest - and Income taxes that have been incurred but have not been recorded during an accounting period.






28. Working totals






29. Postponement of recognition of an expense already paid.






30. A separate account that is paired with a related account






31. The difficulty of deciding when a business transaction should be recorded






32. Determines that all temporary accounts have zero balances and to double check that total debits = total credits






33. Determines corporate policy - declares dividends and appoints management.






34. People that estimate various things






35. The estimation of business's net income in terms of accounting periods.






36. The ability to have enough cash to pay debts when they are due.






37. Decreases






38. When title to merchandise passes from the supplier to the purchaser and creates an obligation to pay.






39. Generally Accepted Accounting Principles - or guidelines for financial accounting.






40. Government Accounting Standards Board - similar to FASB - issues accounting standards for state and local governments.






41. A body of people set up by Congress who protect the public by regulating the issuing - buying - and selling of stocks in the US.






42. Accounting for revenues in the period in which cash is received and for expenses in the period where cash is paid. More closely related to the goal of liquidity.






43. Customer buys a service - company pays an employee for service - company performs service






44. The predetermined time at which a transaction should be recorded.






45. Payments of rent - insurance - supplies - and the depreciation of plant and equipment






46. Close the revenues account - Close the expense account - Close the income summary account - Close the dividends account






47. A net loss occurs






48. The manipulation of revenues and expenses to achieve a specific outcome.






49. Sole worker of your business






50. Match expenses with the revenues that they help generate - & vice versa.