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






2. Accounting Equation






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






4. International Accounting Standards Board.






5. People that estimate various things






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






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






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






9. Revenues - Expenses






10. The amount allocated to any one accounting period.






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






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






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






14. 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






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






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






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






18. 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.






19. Their related asset accounts on the balance sheet






20. Postponement of recognition of an expense already paid.






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






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






26. Increases






27. As an expense and the corresponding liability accumulate.






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






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






30. The difficulty of deciding when a business 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. Unless there is evidence to the contrary - the accountant assumed that the business will continue to operate indefinitely






33. Lists all accounts and their balances






34. Cash account






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






36. Accounting periods of less than a year.






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






38. Choosing the number of accounting periods






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






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






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






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






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






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






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






46. Sole worker of your business






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






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






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






50. Deferral of an expense! (Except land)