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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. Determines corporate policy - declares dividends and appoints management.






2. 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






3. People that estimate various things






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






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






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






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






8. Accounting periods of less than a year.






9. The amount allocated to any one accounting period.






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






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






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






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






14. 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






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






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






17. Increases






18. Working totals






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

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20. Revenues - Expenses






21. International Accounting Standards Board.






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






23. Cash account






24. 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






25. Their related asset accounts on the balance sheet






26. As an expense and the corresponding liability accumulate.






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






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






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






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






31. Contributed Capital + Retained Earnings

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32. 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)






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






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






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






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

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






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






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






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






41. Lists all accounts and their balances






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






43. Decreases






44. Contains only balance sheet accounts.






45. Accounting Equation






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






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






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






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






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







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Can you answer 50 questions in 15 minutes?


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