Test your basic knowledge |

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






2. Contributed Capital + Retained Earnings

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






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






5. Cash account






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






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






9. Postponement of recognition of an expense already paid.






10. Contains only balance sheet accounts.






11. 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






12. Increases






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






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






15. 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)






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






17. 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






18. Decreases






19. As an expense and the corresponding liability accumulate.






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






21. Choosing the number of accounting periods






22. Sole worker of your business






23. Accounting periods of less than a year.






24. Their related asset accounts on the balance sheet






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






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






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






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






29. Working totals






30. People that estimate various things






31. 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






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






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






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






35. 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.






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






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






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






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






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






41. Revenues - Expenses






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






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






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






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






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






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






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






49. Deferral of an expense! (Except land)






50. A net loss occurs