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. Decreases






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






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






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






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






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






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






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






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






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






11. A net loss occurs






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






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






14. People that estimate various things






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






16. International Accounting Standards Board.






17. Contributed Capital + Retained Earnings

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


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

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


19. 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






20. Deferral of an expense! (Except land)






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






22. 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.






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






24. Revenues - Expenses






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






26. Postponement of recognition of an expense already paid.






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






28. 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.






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






30. Working totals






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






32. Cash account






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






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






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






37. 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






38. Choosing the number of accounting periods






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






40. 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


41. Accounting periods of less than a year.






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






43. Their related asset accounts on the balance sheet






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






45. Increases






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






47. Sole worker of your business






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






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






50. Contains only balance sheet accounts.