SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
CLEP Financial Accounting
Start Test
Study First
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. At a specific point in time (Certain Date)....Assets - Liabilities - Stockholder's equity.
Not recorded as transactions
Permanent Accounts (Real Accounts)
Balance Sheet
Deferral
2. A temporary account that summarizes all revenues and expenses for the period.
Income Summary Account
Continuity
Cash Basis of Accounting
Net Income =
3. Shows the changes in RE over an accounting period.
Accrued revenues
Statement of Retained Earnings:
Accounting Equation
Long term assets are..
4. Close the revenues account - Close the expense account - Close the income summary account - Close the dividends account
Fiscal Year
Steps for Income Summary Account
Statement of Retained Earnings:
GASB
5. As an expense and the corresponding liability accumulate.
Accrued Expenses
Accrued revenues
Carrying Value
Adjusting entries affect...
6. 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.
Valuation Issue
Recognizing unrecorded - earned revenues
Securities Exchange Commission (SEC)
Actuaries
7. Decreases
Steps for Income Summary Account
Net Income =
Expenses are what to SE..
GAAP
8. A body of people set up by Congress who protect the public by regulating the issuing - buying - and selling of stocks in the US.
Accumulated Depreciation Accounts
Steps for Income Summary Account
Earnings Management
Securities Exchange Commission (SEC)
9. Common Stock + Retained Earnings - Dividends + Revenues - Expenses
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
10. The manipulation of revenues and expenses to achieve a specific outcome.
Earnings Management
Allocating recorded - unearned revenues between 2 or more accounting periods (ARUR)
Actuaries
Stockholder's Equity =
11. A net loss occurs
When expenses exceed revenues..
Recognition
Allocating recorded - unearned revenues between 2 or more accounting periods (ARUR)
Actuaries
12. A 12 month accounting period (Vary depending on slack seasons)
Recognition
Fiscal Year
GAAP
Matching Rule
13. Contains only balance sheet accounts.
Final Trial Balance
Adjusted Trial Balance
Consignment Sale
Cash Basis of Accounting
14. Match expenses with the revenues that they help generate - & vice versa.
Income Summary Account
Matching Rule
Corporations
Deferral
15. The ability to have enough cash to pay debts when they are due.
Net Income =
Adjusting entries affect...
Liquidity
Board of Directors
16. Determines that all temporary accounts have zero balances and to double check that total debits = total credits
Recognizing unrecorded - earned revenues
Cash Basis of Accounting
Post-closing trial balance
Final Trial Balance
17. Forces a monetary value to a business transaction and accounting for the assets and liabilities that result from the transaction.
Valuation
Interim Periods
Liquidity
Dividends are what to SE
18. Customer buys a service - company pays an employee for service - company performs service
Normal Balance
Income Statement
Allocating recorded costs between 2 or more accounting periods (ARC)
Events that are recorded as transactions
19. Persuasive evidence of arrangement - Seller's price is fixed or determinable - Product or service has been delivered - Collectibility is reasonably assured
Actuaries
Mutual Agency
Expenses are what to SE..
SEC Requirements for transactions
20. It's usual balance and is the side (debit or credit) that increases the amount.
Steps for Income Summary Account
Carrying Value
Normal Balance
Fiscal Year
21. The amount allocated to any one accounting period.
Continuity Assumption
Consignment Sale
Depreciation
IASB
22. A separate account that is paired with a related account
Corporations
Contra Account
Closing Entries
'Big Bath Theory'
23. Determines corporate policy - declares dividends and appoints management.
Allocating recorded costs between 2 or more accounting periods (ARC)
Board of Directors
Mutual Agency
Accrual Accounting
24. If you're having a bad year - to dump everything into something else like pensions
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
25. People that estimate various things
Continuity
Actuaries
Recognition Point
IASB
26. The estimation of business's net income in terms of accounting periods.
Footings
Sole proprietorship
Income Statement
Periodicity
27. Separate legal entities - and the corporation can enter contracts and also be sued. Stockholder's cannot be sued.
Corporations
Statement of Retained Earnings:
Carrying Value
Events that are recorded as transactions
28. Decreases
Net Income =
Sole proprietorship
Dividends are what to SE
Continuity
29. Companies present annual financial statements on the assumption that the business will continue to operate indefinitely
Allocating recorded costs between 2 or more accounting periods (ARC)
Not recorded as transactions
Board of Directors
Going Concern
30. When title to merchandise passes from the supplier to the purchaser and creates an obligation to pay.
We Recognize A Transaction
Events that are recorded as transactions
Going Concern
Balance Sheet
31. The predetermined time at which a transaction should be recorded.
Recognition Point
Statement of Retained Earnings:
Accumulated Depreciation accounts are deducted from..
Cash Basis of Accounting
32. Government Accounting Standards Board - similar to FASB - issues accounting standards for state and local governments.
Accrued revenues
Income Summary Account
GASB
Depreciation
33. Lists all accounts and their balances
Adjusted Trial Balance
Accumulated Depreciation Accounts
Actuaries
Carrying Value
34. Focuses on assigning a monetary value to a business transaction and accounting for assets and liabilities.
Valuation Issue
Consignment Sale
GAAP
Permanent Accounts (Real Accounts)
35. Payments of rent - insurance - supplies - and the depreciation of plant and equipment
Allocating recorded costs between 2 or more accounting periods (ARC)
Dividends are what to SE
Allocating recorded - unearned revenues between 2 or more accounting periods (ARUR)
When expenses exceed revenues..
36. Deferral of an expense! (Except land)
Long term assets are..
Accrual Accounting
SEC Requirements for transactions
Income Statement
37. Financial Accounting Standards Board - Designed by SEC to develop rules on accounting practice.
Liquidity
Sole proprietorship
Cash Basis of Accounting
FASB
38. 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
Adjusting entries NEVER affect..
Matching Rule
Income Summary Account
Accrual Accounting
39. Contributed Capital + Retained Earnings
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
40. Cash account
Fiscal Year
Permanent Accounts (Real Accounts)
Adjusting entries NEVER affect..
Adjusting entries affect...
41. Revenues that a company has earned but for which no entry has been made in the accounting records
Cost Principle
Adjusting entries affect...
Stockholder's Equity
Accrued revenues
42. Society recognizes you as a partner of your partnership - so if you or they do something stupid - you are bound to that deal.
Income Summary Account
Mutual Agency
Consignment Sale
Not recorded as transactions
43. Generally Accepted Accounting Principles - or guidelines for financial accounting.
GAAP
Dividends are what to SE
Allocating recorded costs between 2 or more accounting periods (ARC)
Periodicity
44. Revenues - Expenses
Net Income =
GAAP
Recognizing Unrecorded Expenses (RUE)
Balance Sheet
45. 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
Closing Entries
Valuation
IASB
Recognition
46. Increases
Mutual Agency
Revenues are what to SE..
Corporations
Going Concern
47. Choosing the number of accounting periods
Continuity Assumption
Events that are recorded as transactions
Continuity
Board of Directors
48. Payments received in advance - and deposits made on goods and services
'Big Bath Theory'
Income Statement
Interim Periods
Allocating recorded - unearned revenues between 2 or more accounting periods (ARUR)
49. 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
Operating Activities
Income Statement
Stockholder's Equity
SEC Requirements for transactions
50. 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.
Corporations
Accumulated Depreciation accounts are deducted from..
Cash Basis of Accounting
Not recorded as transactions