SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
CLEP Financial Accounting
Start Test
Study First
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. Unless there is evidence to the contrary - the accountant assumed that the business will continue to operate indefinitely
Mutual Agency
Continuity Assumption
Securities Exchange Commission (SEC)
Fiscal Year
2. The predetermined time at which a transaction should be recorded.
Recognition Point
Contra Account
Deferral
GAAP
3. Choosing the number of accounting periods
Consignment Sale
Accumulated Depreciation accounts are deducted from..
Cost Principle
Continuity
4. Their related asset accounts on the balance sheet
Mutual Agency
Accumulated Depreciation accounts are deducted from..
Final Trial Balance
Valuation
5. It's usual balance and is the side (debit or credit) that increases the amount.
When expenses exceed revenues..
Normal Balance
Balance Sheet
Contra Account
6. 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
Income Statement
Fiscal Year
Consignment Sale
Recognizing Unrecorded Expenses (RUE)
7. Generally Accepted Accounting Principles - or guidelines for financial accounting.
We Recognize A Transaction
Liquidity
GAAP
Matching Rule
8. Forces a monetary value to a business transaction and accounting for the assets and liabilities that result from the transaction.
Valuation
When expenses exceed revenues..
Fiscal Year
IASB
9. The ability to have enough cash to pay debts when they are due.
Liquidity
SEC Requirements for transactions
Accrual Accounting
Earnings Management
10. Contributed Capital + Retained Earnings
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
11. Increases
Revenues are what to SE..
Net Income =
Accumulated Depreciation accounts are deducted from..
Deferral
12. As an expense and the corresponding liability accumulate.
Accounting Equation
Income Summary Account
Accrued Expenses
Events that are recorded as transactions
13. Customer buys a service - company pays an employee for service - company performs service
Stockholder's Equity =
GAAP
Recognizing Unrecorded Expenses (RUE)
Events that are recorded as transactions
14. Financial Accounting Standards Board - Designed by SEC to develop rules on accounting practice.
Normal Balance
FASB
Cash Basis of Accounting
Events that are recorded as transactions
15. A body of people set up by Congress who protect the public by regulating the issuing - buying - and selling of stocks in the US.
Securities Exchange Commission (SEC)
Adjusting entries NEVER affect..
Stockholder's Equity =
Post-closing trial balance
16. Match expenses with the revenues that they help generate - & vice versa.
Adjusted Trial Balance
Securities Exchange Commission (SEC)
Matching Rule
Balance Sheet
17. Cash account
Corporations
Dividends are what to SE
Post-closing trial balance
Adjusting entries NEVER affect..
18. Payments received in advance - and deposits made on goods and services
Allocating recorded - unearned revenues between 2 or more accounting periods (ARUR)
Steps for Income Summary Account
Liquidity
Post-closing trial balance
19. Persuasive evidence of arrangement - Seller's price is fixed or determinable - Product or service has been delivered - Collectibility is reasonably assured
Recognizing unrecorded - earned revenues
Accrual Accounting
SEC Requirements for transactions
Interim Periods
20. Determines that all temporary accounts have zero balances and to double check that total debits = total credits
Permanent Accounts (Real Accounts)
GAAP
Long term assets are..
Post-closing trial balance
21. Revenues - Expenses
Continuity
Final Trial Balance
Net Income =
Dividends are what to SE
22. Sole worker of your business
Contra Account
Recognition
Actuaries
Sole proprietorship
23. Payments of rent - insurance - supplies - and the depreciation of plant and equipment
Dividends are what to SE
Cost Principle
Allocating recorded costs between 2 or more accounting periods (ARC)
Accumulated Depreciation accounts are deducted from..
24. Government Accounting Standards Board - similar to FASB - issues accounting standards for state and local governments.
Cost Principle
GASB
Periodicity
Carrying Value
25. People that estimate various things
Liquidity
Permanent Accounts (Real Accounts)
Actuaries
Continuity
26. Selling goods and services to customers - employing managers and workers.
Operating Activities
When expenses exceed revenues..
Consignment Sale
FASB
27. Companies present annual financial statements on the assumption that the business will continue to operate indefinitely
Steps for Income Summary Account
Corporations
Post-closing trial balance
Going Concern
28. The difficulty of deciding when a business transaction should be recorded
Sole proprietorship
Recognition
SEC Requirements for transactions
Consignment Sale
29. Shows the changes in RE over an accounting period.
Carrying Value
IASB
Matching Rule
Statement of Retained Earnings:
30. A separate account that is paired with a related account
Closing Entries
Contra Account
SEC Requirements for transactions
Statement of Retained Earnings:
31. Focuses on assigning a monetary value to a business transaction and accounting for assets and liabilities.
Depreciation
Accounting Equation
Adjusting entries affect...
Valuation Issue
32. Accounting periods of less than a year.
Final Trial Balance
Interim Periods
Actuaries
Income Summary Account
33. The manipulation of revenues and expenses to achieve a specific outcome.
Accrued Expenses
Recognizing Unrecorded Expenses (RUE)
Valuation
Earnings Management
34. Working totals
Cost Principle
Footings
Steps for Income Summary Account
Revenues are what to SE..
35. The net amount - or 'Book Value' of an asset
Carrying Value
Not recorded as transactions
Matching Rule
Periodicity
36. Close the revenues account - Close the expense account - Close the income summary account - Close the dividends account
Steps for Income Summary Account
'Big Bath Theory'
Permanent Accounts (Real Accounts)
SEC Requirements for transactions
37. Determines corporate policy - declares dividends and appoints management.
Interim Periods
Board of Directors
Stockholder's Equity =
Allocating recorded costs between 2 or more accounting periods (ARC)
38. Decreases
Dividends are what to SE
FASB
Going Concern
Carrying Value
39. Balance sheet accounts - such as cash and accounts payable because they carry their end-of-period balances into the next accounting period
Normal Balance
Not recorded as transactions
Matching Rule
Permanent Accounts (Real Accounts)
40. 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
Closing Entries
GASB
Sole proprietorship
FASB
41. The amount allocated to any one accounting period.
Depreciation
Liquidity
Continuity Assumption
Allocating recorded costs between 2 or more accounting periods (ARC)
42. Decreases
Balance Sheet
Revenues are what to SE..
FASB
Expenses are what to SE..
43. Net income on the income statement - and profitability comparisons from one accounting period to the next.
Adjusting entries affect...
Footings
Accrual Accounting
Cost Principle
44. A temporary account that summarizes all revenues and expenses for the period.
Income Summary Account
GASB
Corporations
Cost Principle
45. Postponement of recognition of an expense already paid.
Allocating recorded costs between 2 or more accounting periods (ARC)
Deferral
Fiscal Year
Expenses are what to SE..
46. 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)
Stockholder's Equity
Fiscal Year
Consignment Sale
Going Concern
47. Contains only balance sheet accounts.
Final Trial Balance
Adjusting entries NEVER affect..
Income Summary Account
Liquidity
48. Accounting Equation
Continuity Assumption
Net Income =
Accounting Equation
Accrual Accounting
49. A 12 month accounting period (Vary depending on slack seasons)
Deferral
GASB
Consignment Sale
Fiscal Year
50. The practice of recording transactions at exchange price at the point of recognition.
Recognizing Unrecorded Expenses (RUE)
Cost Principle
Accrued Expenses
Balance Sheet