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






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






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






4. Revenues - Expenses






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

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






7. Lists all accounts and their balances






8. Postponement of recognition of an expense already paid.






9. A net loss occurs






10. International Accounting Standards Board.






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






12. Choosing the number of accounting periods






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






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






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






16. Sole worker of your business






17. 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






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






19. Deferral of an expense! (Except land)






20. Increases






21. As an expense and the corresponding liability accumulate.






22. The amount allocated to any one accounting period.






23. Contains only balance sheet accounts.






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






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






26. 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.






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






28. Working totals






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






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






31. Their related asset accounts on the balance sheet






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






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






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






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






36. If you're having a bad year - to dump everything into something else like pensions

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






38. Contributed Capital + Retained Earnings

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






41. Accounting Equation






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






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






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






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






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






47. 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






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






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






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