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






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






3. 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






4. Lists all accounts and their balances






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






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






7. 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)






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






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






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






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






12. Working totals






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






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






15. Accounting periods of less than a year.






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






17. Contains only balance sheet accounts.






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






19. 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






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






21. The amount allocated to any one accounting period.






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






23. 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






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






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

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






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






28. A net loss occurs






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






30. Increases






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






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






33. Their related asset accounts on the balance sheet






34. Cash account






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






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






37. Revenues - Expenses






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






39. 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.






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






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






42. Postponement of recognition of an expense already paid.






43. Contributed Capital + Retained Earnings

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






45. As an expense and the corresponding liability accumulate.






46. Decreases






47. People that estimate various things






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






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






50. Choosing the number of accounting periods







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Can you answer 50 questions in 15 minutes?


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