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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. Contributed Capital + Retained Earnings

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2. International Accounting Standards Board.






3. Decreases






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






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






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






7. Cash account






8. Choosing the number of accounting periods






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






10. Accounting periods of less than a year.






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






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






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






14. Sole worker of your business






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






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






17. Deferral of an expense! (Except land)






18. Their related asset accounts on the balance sheet






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






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






21. 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






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






23. 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)






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






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. Shows the changes in RE over an accounting period.






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






28. Decreases






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






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






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






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






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






34. A net loss occurs






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






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






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






38. 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






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






40. People that estimate various things






41. Accounting Equation






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






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

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






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






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






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






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






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