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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. Increases






2. 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






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






4. Choosing the number of accounting periods






5. Cash account






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






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






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






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






10. Contributed Capital + Retained Earnings

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






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






13. 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)






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






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






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






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






18. 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.






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

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






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






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






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






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






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






26. 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






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






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






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






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






31. International Accounting Standards Board.






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






33. Revenues - Expenses






34. 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






35. As an expense and the corresponding liability accumulate.






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






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






38. Decreases






39. Deferral of an expense! (Except land)






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






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






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






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






44. Accounting periods of less than a year.






45. Decreases






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






47. The amount allocated to any one accounting period.






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






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

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







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Can you answer 50 questions in 15 minutes?


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