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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. Sole worker of your business






2. Their related asset accounts on the balance sheet






3. Postponement of recognition of an expense already paid.






4. Deferral of an expense! (Except land)






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






6. Accounting Equation






7. 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.






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






9. People that estimate various things






10. Choosing the number of accounting periods






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






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






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






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






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

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16. Lists all accounts and their balances






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






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






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






20. Working totals






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






22. Contains only balance sheet accounts.






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






24. A net loss occurs






25. 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






26. International Accounting Standards Board.






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






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






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






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






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






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






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






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






35. Decreases






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. 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






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






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






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






41. Accounting periods of less than a year.






42. As an expense and the corresponding liability accumulate.






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






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






45. Contributed Capital + Retained Earnings

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46. 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






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

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48. Cash account






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






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






Can you answer 50 questions in 15 minutes?



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