SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
CLEP Financial Accounting
Start Test
Study First
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. Customer buys a service - company pays an employee for service - company performs service
Events that are recorded as transactions
Accrued Expenses
Balance Sheet
Dividends are what to SE
2. 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)
Consignment Sale
Events that are recorded as transactions
Statement of Retained Earnings:
Board of Directors
3. Common Stock + Retained Earnings - Dividends + Revenues - Expenses
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
4. 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.
Consignment Sale
Adjusted Trial Balance
Cash Basis of Accounting
Dividends are what to SE
5. A body of people set up by Congress who protect the public by regulating the issuing - buying - and selling of stocks in the US.
Recognizing unrecorded - earned revenues
Securities Exchange Commission (SEC)
Continuity Assumption
When expenses exceed revenues..
6. Generally Accepted Accounting Principles - or guidelines for financial accounting.
GAAP
Deferral
Carrying Value
Cash Basis of Accounting
7. Decreases
Accrued Expenses
Expenses are what to SE..
Periodicity
Recognition Point
8. The difficulty of deciding when a business transaction should be recorded
Balance Sheet
Recognition
Income Summary Account
Footings
9. Revenues that a company has earned but for which no entry has been made in the accounting records
Accrued revenues
Dividends are what to SE
Allocating recorded costs between 2 or more accounting periods (ARC)
Operating Activities
10. A 12 month accounting period (Vary depending on slack seasons)
Operating Activities
Fiscal Year
Income Summary Account
Deferral
11. The ability to have enough cash to pay debts when they are due.
Liquidity
Steps for Income Summary Account
Closing Entries
Accumulated Depreciation accounts are deducted from..
12. Decreases
Allocating recorded - unearned revenues between 2 or more accounting periods (ARUR)
Dividends are what to SE
Events that are recorded as transactions
Cash Basis of Accounting
13. As an expense and the corresponding liability accumulate.
Accrued Expenses
GAAP
Adjusting entries NEVER affect..
Expenses are what to SE..
14. Accounting periods of less than a year.
IASB
Depreciation
Interim Periods
Statement of Retained Earnings:
15. Deferral of an expense! (Except land)
Stockholder's Equity =
Long term assets are..
Corporations
Mutual Agency
16. The estimation of business's net income in terms of accounting periods.
Accumulated Depreciation accounts are deducted from..
Valuation
Periodicity
Recognition Point
17. Persuasive evidence of arrangement - Seller's price is fixed or determinable - Product or service has been delivered - Collectibility is reasonably assured
Deferral
SEC Requirements for transactions
Adjusting entries affect...
FASB
18. When title to merchandise passes from the supplier to the purchaser and creates an obligation to pay.
We Recognize A Transaction
Post-closing trial balance
Valuation
IASB
19. Close the revenues account - Close the expense account - Close the income summary account - Close the dividends account
Steps for Income Summary Account
Continuity Assumption
Periodicity
Going Concern
20. The practice of recording transactions at exchange price at the point of recognition.
Fiscal Year
Cost Principle
Income Summary Account
Expenses are what to SE..
21. Revenues - Expenses
Accrued Expenses
Net Income =
GAAP
Fiscal Year
22. 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
Dividends are what to SE
Recognizing Unrecorded Expenses (RUE)
Income Statement
Securities Exchange Commission (SEC)
23. Society recognizes you as a partner of your partnership - so if you or they do something stupid - you are bound to that deal.
Mutual Agency
Events that are recorded as transactions
FASB
Accounting Equation
24. Lists all accounts and their balances
Recognizing Unrecorded Expenses (RUE)
Adjusting entries affect...
Adjusted Trial Balance
Allocating recorded costs between 2 or more accounting periods (ARC)
25. Shows the changes in RE over an accounting period.
GAAP
Sole proprietorship
Statement of Retained Earnings:
Recognition Point
26. Sole worker of your business
Stockholder's Equity =
Dividends are what to SE
Sole proprietorship
Final Trial Balance
27. Companies present annual financial statements on the assumption that the business will continue to operate indefinitely
Carrying Value
Going Concern
Deferral
Permanent Accounts (Real Accounts)
28. Increases
Corporations
Recognizing Unrecorded Expenses (RUE)
Depreciation
Revenues are what to SE..
29. Wages - Interest - and Income taxes that have been incurred but have not been recorded during an accounting period.
Recognizing Unrecorded Expenses (RUE)
Cost Principle
Sole proprietorship
Periodicity
30. The amount allocated to any one accounting period.
Corporations
Depreciation
Statement of Retained Earnings:
Adjusting entries affect...
31. Payments of rent - insurance - supplies - and the depreciation of plant and equipment
Fiscal Year
Recognizing Unrecorded Expenses (RUE)
Allocating recorded costs between 2 or more accounting periods (ARC)
When expenses exceed revenues..
32. Match expenses with the revenues that they help generate - & vice versa.
Fiscal Year
'Big Bath Theory'
FASB
Matching Rule
33. 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
Events that are recorded as transactions
Steps for Income Summary Account
Sole proprietorship
Closing Entries
34. Contributed Capital + Retained Earnings
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
35. customer inquires about availability of service -company hires new employee -company signs contract to provide service in future
Statement of Retained Earnings:
Net Income =
Not recorded as transactions
Going Concern
36. Determines corporate policy - declares dividends and appoints management.
Board of Directors
Valuation Issue
Consignment Sale
Continuity
37. It's usual balance and is the side (debit or credit) that increases the amount.
Matching Rule
Normal Balance
'Big Bath Theory'
Stockholder's Equity =
38. The manipulation of revenues and expenses to achieve a specific outcome.
Accumulated Depreciation Accounts
Continuity
Recognizing unrecorded - earned revenues
Earnings Management
39. A temporary account that summarizes all revenues and expenses for the period.
Income Summary Account
Cost Principle
Footings
Long term assets are..
40. Working totals
Corporations
Cash Basis of Accounting
Depreciation
Footings
41. Payments received in advance - and deposits made on goods and services
Allocating recorded - unearned revenues between 2 or more accounting periods (ARUR)
Corporations
Board of Directors
Normal Balance
42. Separate legal entities - and the corporation can enter contracts and also be sued. Stockholder's cannot be sued.
Mutual Agency
Statement of Retained Earnings:
Corporations
Cost Principle
43. A net loss occurs
When expenses exceed revenues..
Adjusting entries NEVER affect..
Contra Account
Events that are recorded as transactions
44. Unless there is evidence to the contrary - the accountant assumed that the business will continue to operate indefinitely
Fiscal Year
Stockholder's Equity =
Income Statement
Continuity Assumption
45. The predetermined time at which a transaction should be recorded.
Depreciation
Consignment Sale
Recognition Point
Expenses are what to SE..
46. If you're having a bad year - to dump everything into something else like pensions
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
47. Postponement of recognition of an expense already paid.
Adjusting entries NEVER affect..
Long term assets are..
Deferral
Corporations
48. The net amount - or 'Book Value' of an asset
Events that are recorded as transactions
Carrying Value
Depreciation
Adjusted Trial Balance
49. Cash account
Final Trial Balance
Consignment Sale
Adjusting entries NEVER affect..
Securities Exchange Commission (SEC)
50. Their related asset accounts on the balance sheet
Matching Rule
Balance Sheet
Corporations
Accumulated Depreciation accounts are deducted from..
Sorry!:) No result found.
Can you answer 50 questions in 15 minutes?
Let me suggest you:
Browse all subjects
Browse all tests
Most popular tests
Major Subjects
Tests & Exams
AP
CLEP
DSST
GRE
SAT
GMAT
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests