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






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






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






4. Cash account






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

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






7. International Accounting Standards Board.






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






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






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






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






12. A net loss occurs






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






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






15. People that estimate various things






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






17. Lists all accounts and their balances






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






19. 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)






20. Accounting Equation






21. Postponement of recognition of an expense already paid.






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

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






24. Their related asset accounts on the balance sheet






25. Working totals






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






27. Revenues - Expenses






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






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






30. 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.






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






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






33. Decreases






34. 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






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






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






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






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






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






40. 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






41. Contributed Capital + Retained Earnings

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






43. Increases






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






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






46. Accounting periods of less than a year.






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






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






49. Deferral of an expense! (Except land)






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







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Can you answer 50 questions in 15 minutes?


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