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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. Postponement of recognition of an expense already paid.






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






3. People that estimate various things






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






5. Choosing the number of accounting periods






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






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






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






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






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






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






12. Accounting Equation






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






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






15. Contains only balance sheet accounts.






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






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






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






19. The amount allocated to any one accounting period.






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






21. Their related asset accounts on the balance sheet






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






23. Deferral of an expense! (Except land)






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






25. 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






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






27. Contributed Capital + Retained Earnings


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






29. 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






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






31. Cash account






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






33. 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)






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


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






36. Sole worker of your business






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






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






39. Revenues - Expenses






40. Accounting periods of less than a year.






41. As an expense and the corresponding liability accumulate.






42. 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.






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






44. Decreases






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






46. Increases






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


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






49. Decreases






50. Lists all accounts and their balances