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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. People that estimate various things






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






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






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

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5. Contains only balance sheet accounts.






6. Their related asset accounts on the balance sheet






7. A 12 month accounting period (Vary depending on slack seasons)






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






9. Accounting Equation






10. The amount allocated to any one accounting period.






11. 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)






12. Contributed Capital + Retained Earnings

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






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






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






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






17. Increases






18. A net loss occurs






19. Working totals






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






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






22. 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.






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






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






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






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






27. Postponement of recognition of an expense already paid.






28. 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






29. Decreases






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






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






32. Accounting periods of less than a year.






33. 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.






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






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






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






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






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






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






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






41. Cash account






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






43. Decreases






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






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






46. Revenues - Expenses






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






48. Sole worker of your business






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






50. As an expense and the corresponding liability accumulate.