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






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






3. Cash account






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






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






6. Lists all accounts and their balances






7. Persuasive evidence of arrangement - Seller's price is fixed or determinable - Product or service has been delivered - Collectibility is reasonably assured






8. 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






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






10. Choosing the number of accounting periods






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






12. Accounting Equation






13. Made at the end of accounting period..-They clear revenue - expense accounts - and dividends account of their balances. -Summarize a period's revenue and expenses by transferring the balances of them to the income summary account






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






15. Decreases






16. 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.






17. Contains only balance sheet accounts.






18. Deferral of an expense! (Except land)






19. Working totals






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






21. It's usual balance and is the side (debit or credit) that increases the amount.






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






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






24. Their related asset accounts on the balance sheet






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






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






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






28. Postponement of recognition of an expense already paid.






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






30. Revenues - Expenses






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






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






33. As an expense and the corresponding liability accumulate.






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






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






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






37. Increases






38. A net loss occurs






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






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






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






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

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43. 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)






44. International Accounting Standards Board.






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






46. Contributed Capital + Retained Earnings

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






48. Revenue that a company has earned for providing a service but for which it has not billed or been paid by the end of the accounting period.






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






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







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Can you answer 50 questions in 15 minutes?


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