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






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






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






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






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






6. 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.






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






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

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9. The amount allocated to any one accounting period.






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






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






12. Their related asset accounts on the balance sheet






13. Revenues - Expenses






14. Choosing the number of accounting periods






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






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






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






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






19. Accounting periods of less than a year.






20. People that estimate various things






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






22. Contributed Capital + Retained Earnings

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23. 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






24. Sole worker of your business






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






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






27. Working totals






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






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






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






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






32. Accounting Equation






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






34. Contains only balance sheet accounts.






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






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. International Accounting Standards Board.






38. 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.






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






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






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






42. Decreases






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






44. 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






45. 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






46. Decreases






47. Deferral of an expense! (Except land)






48. Postponement of recognition of an expense already paid.






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

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50. Cash account







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Can you answer 50 questions in 15 minutes?


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