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

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






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






4. Revenues - Expenses






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






6. 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






7. 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.






8. 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.






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






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






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






12. Working totals






13. The amount allocated to any one accounting period.






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






15. Contributed Capital + Retained Earnings

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






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






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






19. A net loss occurs






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






21. Accounting Equation






22. Postponement of recognition of an expense already paid.






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






24. Their related asset accounts on the balance sheet






25. Decreases






26. Decreases






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






28. International Accounting Standards Board.






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






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






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. Cash account






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






34. 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)






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






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






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






38. Choosing the number of accounting periods






39. Sole worker of your business






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






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






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






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






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






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






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






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






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






49. Deferral of an expense! (Except land)






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