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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. Revenues - Expenses






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






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






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






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






6. Sole worker of your business






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






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






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






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






11. 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.






12. 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






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






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






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

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16. Contains only balance sheet accounts.






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






18. The amount allocated to any one accounting period.






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






20. Postponement of recognition of an expense already paid.






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






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






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






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






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






26. Working totals






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






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






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






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

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






32. Accounting Equation






33. A net loss occurs






34. Deferral of an expense! (Except land)






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






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






37. Lists all accounts and their balances






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






39. Decreases






40. 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)






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






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






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






44. Their related asset accounts on the balance sheet






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






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






47. Increases






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






49. 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






50. Decreases







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Can you answer 50 questions in 15 minutes?


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