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






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






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






4. 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






5. Decreases






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






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






8. A net loss occurs






9. Lists all accounts and their balances






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






11. 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






12. As an expense and the corresponding liability accumulate.






13. Contributed Capital + Retained Earnings

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


14. Accounting Equation






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






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






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






18. 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


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






20. Accounting periods of less than a year.






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






22. 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


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






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






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






26. Working totals






27. Increases






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






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






30. Decreases






31. The amount allocated to any one accounting period.






32. Cash account






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






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






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






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. A separate account that is paired with a related account






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






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






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






41. 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






42. Postponement of recognition of an expense already paid.






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






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






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






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






47. 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.






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






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






50. Their related asset accounts on the balance sheet