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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. Cash account






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






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






4. Contains only balance sheet accounts.






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






6. Choosing the number of accounting periods






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






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






9. Deferral of an expense! (Except land)






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






11. Increases






12. As an expense and the corresponding liability accumulate.






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






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

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15. 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.






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






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






18. Sole worker of your business






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






20. Postponement of recognition of an expense already paid.






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






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






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






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






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






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






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






28. Working totals






29. Decreases






30. Lists all accounts and their balances






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






32. Contributed Capital + Retained Earnings

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






34. International Accounting Standards Board.






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






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






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






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






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






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






41. Accounting Equation






42. Decreases






43. 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






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






45. 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






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






47. Accounting periods of less than a year.






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






49. People that estimate various things






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