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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. Determines corporate policy - declares dividends and appoints management.






2. 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)






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






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






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






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






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






8. Postponement of recognition of an expense already paid.






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






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

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






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






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






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






15. Revenues - Expenses






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






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






18. Increases






19. The amount allocated to any one accounting period.






20. Lists all accounts and their balances






21. Deferral of an expense! (Except land)






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






23. As an expense and the corresponding liability accumulate.






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






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






26. People that estimate various things






27. International Accounting Standards Board.






28. Sole worker of your business






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






30. Decreases






31. Decreases






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






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






34. Accounting periods of less than a year.






35. Accounting Equation






36. Contributed Capital + Retained Earnings

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






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






39. A net loss occurs






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






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






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






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






44. Working totals






45. 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.






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






47. Contains only balance sheet accounts.






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






49. 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.






50. Cash account