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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. Choosing the number of accounting periods






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






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






4. Customer buys a service - company pays an employee for service - company performs service






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






6. 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






7. As an expense and the corresponding liability accumulate.






8. People that estimate various things






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






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






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






12. Cash account






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






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






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






17. Their related asset accounts on the balance sheet






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






19. International Accounting Standards Board.






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






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






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






23. Decreases






24. Lists all accounts and their balances






25. A net loss occurs






26. Revenues - Expenses






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






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






30. Decreases






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






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






33. 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






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






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






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






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






38. Working totals






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






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






41. Accounting Equation






42. 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.






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






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

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45. Sole worker of your business






46. Contains only balance sheet accounts.






47. Postponement of recognition of an expense already paid.






48. Increases






49. 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)






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






Can you answer 50 questions in 15 minutes?



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