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






2. Increases






3. Working totals






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






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






6. 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.






7. Decreases






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






9. 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






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






11. Postponement of recognition of an expense already paid.






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






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






14. Their related asset accounts on the balance sheet






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






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






17. Revenues - Expenses






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






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






21. Accounting Equation






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

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23. 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.






24. Sole worker of your business






25. The amount allocated to any one accounting period.






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






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






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

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






30. A net loss occurs






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






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






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






34. Decreases






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






36. 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






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






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






39. Lists all accounts and their balances






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






41. 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






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






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






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






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






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






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






48. Contains only balance sheet accounts.






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






50. Contributed Capital + Retained Earnings

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Can you answer 50 questions in 15 minutes?



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