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






2. Working totals






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






4. Contributed Capital + Retained Earnings

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5. 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.






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






7. 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






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






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






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






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






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






13. Contains only balance sheet accounts.






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






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






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






17. Postponement of recognition of an expense already paid.






18. The amount allocated to any one accounting period.






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






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






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






22. Deferral of an expense! (Except land)






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






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






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






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






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






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






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






30. 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






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






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






33. Increases






34. People that estimate various things






35. Decreases






36. 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.






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






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

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39. Accounting periods of less than a year.






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






41. Decreases






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






43. Cash account






44. Accounting Equation






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

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






47. Choosing the number of accounting periods






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






49. Revenues - Expenses






50. Lists all accounts and their balances







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Can you answer 50 questions in 15 minutes?


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