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






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






3. Revenues - Expenses






4. People that estimate various things






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






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






7. Deferral of an expense! (Except land)






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






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






10. 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






11. Contributed Capital + Retained Earnings


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






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






14. The amount allocated to any one accounting period.






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






16. Society recognizes you as a partner of your partnership - so if you or they do something stupid - you are bound to that deal.






17. Working totals






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






19. 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)






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






21. Separate legal entities - and the corporation can enter contracts and also be sued. Stockholder's cannot be sued.






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






23. Increases






24. Choosing the number of accounting periods






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






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






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






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






29. 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.






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






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






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






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






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


35. Lists all accounts and their balances






36. Accounting Equation






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






38. Accounting periods of less than a year.






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






40. Decreases






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






42. Contains only balance sheet accounts.






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






44. Sole worker of your business






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






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






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






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






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






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