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






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






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






4. 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.






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






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






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






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






9. 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)






10. Postponement of recognition of an expense already paid.






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






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






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


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






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






16. Lists all accounts and their balances






17. The amount allocated to any one accounting period.






18. Decreases






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






20. Revenues - Expenses






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






22. 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






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






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






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






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






27. Sole worker of your business






28. 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






29. Contains only balance sheet accounts.






30. Cash account






31. Accounting periods of less than a year.






32. Increases






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






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






35. As an expense and the corresponding liability accumulate.






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






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






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






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






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






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






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






43. Accounting Equation






44. Deferral of an expense! (Except land)






45. A net loss occurs






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






47. International Accounting Standards Board.






48. Working totals






49. Their related asset accounts on the balance sheet






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