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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. International Accounting Standards Board.






2. 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.






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






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






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






6. Revenues - Expenses






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






8. Postponement of recognition of an expense already paid.






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






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






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






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






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






14. 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.






15. 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






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






17. Contains only balance sheet accounts.






18. Working totals






19. Cash account






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






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






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






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






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






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






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






27. Accounting periods of less than a year.






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






29. 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)






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






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






32. People that estimate various things






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






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






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






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






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






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






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






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






41. Lists all accounts and their balances






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






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






44. Accounting Equation






45. As an expense and the corresponding liability accumulate.






46. Choosing the number of accounting periods






47. A net loss occurs






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






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






50. Their related asset accounts on the balance sheet