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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. International Accounting Standards Board.






2. Accounting periods of less than a year.






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






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






5. People that estimate various things






6. A net loss occurs






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






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






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






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


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






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






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






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






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






16. Contributed Capital + Retained Earnings


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






18. Deferral of an expense! (Except land)






19. Contains only balance sheet accounts.






20. 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






21. Cash account






22. Increases






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


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






25. Working totals






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






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






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






29. Postponement of recognition of an expense already paid.






30. As an expense and the corresponding liability accumulate.






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






32. Decreases






33. The amount allocated to any one accounting period.






34. 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






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






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






37. Choosing the number of accounting periods






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






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






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






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






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






43. Lists all accounts and their balances






44. Decreases






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






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






47. Revenues - Expenses






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






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






50. 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)