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






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






3. Their related asset accounts on the balance sheet






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






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






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






7. 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






8. People that estimate various things






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






10. Contains only balance sheet accounts.






11. A net loss occurs






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






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






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






15. 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.






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






17. Sole worker of your business






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






19. Accounting Equation






20. Postponement of recognition of an expense already paid.






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






22. As an expense and the corresponding liability accumulate.






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






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






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






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






27. Choosing the number of accounting periods






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






29. 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






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






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






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

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






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






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






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






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

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






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






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






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






42. Decreases






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






44. Lists all accounts and their balances






45. Decreases






46. 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






47. Deferral of an expense! (Except land)






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






49. International Accounting Standards Board.






50. The amount allocated to any one accounting period.







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Can you answer 50 questions in 15 minutes?


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