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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. People that estimate various things






2. Postponement of recognition of an expense already paid.






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






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






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






6. Their related asset accounts on the balance sheet






7. Accounting periods of less than a year.






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






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






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






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






12. Contributed Capital + Retained Earnings

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






14. Accounting Equation






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. Cash account






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






18. Decreases






19. Increases






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






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






22. 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)






23. 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






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






25. A net loss occurs






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






27. 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.






28. As an expense and the corresponding liability accumulate.






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






30. Deferral of an expense! (Except land)






31. The amount allocated to any one accounting period.






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






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






34. Lists all accounts and their balances






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

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






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






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






39. Decreases






40. Contains only balance sheet accounts.






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






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






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






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






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






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






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






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






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






50. Sole worker of your business