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






2. Lists all accounts and their balances






3. Postponement of recognition of an expense already paid.






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






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

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






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






8. Accounting periods of less than a year.






9. Accounting Equation






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






11. Decreases






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






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






14. Increases






15. Contains only balance sheet accounts.






16. Contributed Capital + Retained Earnings

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






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






19. Sole worker of your business






20. As an expense and the corresponding liability accumulate.






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






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






23. Decreases






24. Net income on the income statement - and profitability comparisons from one accounting period to the next.






25. 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.






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






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. 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)






29. 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






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






31. Revenues - Expenses






32. Their related asset accounts on the balance sheet






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






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

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35. Deferral of an expense! (Except land)






36. International Accounting Standards Board.






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






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






39. Choosing the number of accounting periods






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






41. Working totals






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






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






44. People that estimate various things






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






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






47. 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






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






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






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







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Can you answer 50 questions in 15 minutes?


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