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






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






3. 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






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






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






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






7. 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


8. 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


9. Choosing the number of accounting periods






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






11. 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.






12. The amount allocated to any one accounting period.






13. Accounting periods of less than a year.






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






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






16. International Accounting Standards Board.






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






18. Contributed Capital + Retained Earnings

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


19. Revenues - Expenses






20. Deferral of an expense! (Except land)






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






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






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






25. 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






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






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






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






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






30. Decreases






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






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






33. Working totals






34. 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






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






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






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






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






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






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. Increases






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






43. Decreases






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






45. Contains only balance sheet accounts.






46. Their related asset accounts on the balance sheet






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






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






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






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