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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. 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






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






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






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






5. Contributed Capital + Retained Earnings

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






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






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






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






10. Accounting periods of less than a year.






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






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






13. Decreases






14. 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






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






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






17. Lists all accounts and their balances






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






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






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

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






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






23. Working totals






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






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






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






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






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






29. Accounting Equation






30. International Accounting Standards Board.






31. Revenues - Expenses






32. As an expense and the corresponding liability accumulate.






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

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






35. Sole worker of your business






36. 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)






37. Contains only balance sheet accounts.






38. Cash account






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






40. 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.






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






42. Deferral of an expense! (Except land)






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






44. The amount allocated to any one accounting period.






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






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






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






48. Increases






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






50. Choosing the number of accounting periods