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






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






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






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






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






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






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






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






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






10. Cash account






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






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






13. Postponement of recognition of an expense already paid.






14. A net loss occurs






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






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






17. Their related asset accounts on the balance sheet






18. 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






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






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






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






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






23. Working totals






24. 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






25. Contains only balance sheet accounts.






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






27. Choosing the number of accounting periods






28. Decreases






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






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






31. International Accounting Standards Board.






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






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






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






35. As an expense and the corresponding liability accumulate.






36. Increases






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






38. Decreases






39. 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.






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






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






42. Contributed Capital + Retained Earnings

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






44. Lists all accounts and their balances






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






46. People that estimate various things






47. Revenues - Expenses






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






49. Sole worker of your business






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