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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. Deferral of an expense! (Except land)






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






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

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






5. A net loss occurs






6. Sole worker of your business






7. The amount allocated to any one accounting period.






8. Lists all accounts and their balances






9. People that estimate various things






10. Cash account






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






12. Postponement of recognition of an expense already paid.






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






14. 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.






15. Contributed Capital + Retained Earnings

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16. 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)






17. Revenues - Expenses






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






19. Summarizes revenues earned and expenses incurred by a business over an accounting period. (Shows whether a business achieved its profitability goal)...Revenues - Expenses - Income taxes






20. Working totals






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






22. Accounting periods of less than a year.






23. If you're having a bad year - to dump everything into something else like pensions

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






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






26. Their related asset accounts on the balance sheet






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






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






29. Decreases






30. Shows the changes in RE over an accounting period.






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






32. International Accounting Standards Board.






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






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






35. customer inquires about availability of service -company hires new employee -company signs contract to provide service in future






36. At a specific point in time (Certain Date)....Assets - Liabilities - Stockholder's equity.






37. Increases






38. Companies present annual financial statements on the assumption that the business will continue to operate indefinitely






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






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






41. Decreases






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






43. Deals with all techniques accountants use to apply the matching rule: Recording revenue when they are earned - Recording expenses when they are incurred - More closely related to profitability - Adjusting the accounts






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






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






46. Accounting Equation






47. Choosing the number of accounting periods






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






49. The practice of recording transactions at exchange price at the point of recognition.






50. Contains only balance sheet accounts.







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Can you answer 50 questions in 15 minutes?


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