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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 manipulation of revenues and expenses to achieve a specific outcome.






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






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






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






5. A net loss occurs






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






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






8. 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.






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






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






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






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






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






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

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






16. People that estimate various things






17. Contributed Capital + Retained Earnings

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18. Accounting periods of less than a year.






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






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






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






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






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






24. Lists all accounts and their balances






25. Increases






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






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






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






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






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






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






32. 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






33. As an expense and the corresponding liability accumulate.






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






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






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. Postponement of recognition of an expense already paid.






38. The amount allocated to any one accounting period.






39. Deferral of an expense! (Except land)






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






41. Decreases






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






43. 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






44. 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)






45. Contains only balance sheet accounts.






46. Cash account






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






48. 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






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






50. Accounting Equation