Test your basic knowledge |

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






3. 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






4. The amount allocated to any one accounting period.






5. A net loss occurs






6. Postponement of recognition of an expense already paid.






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






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






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






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






11. Contains only balance sheet accounts.






12. 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.






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






14. 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


15. Contributed Capital + Retained Earnings

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






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






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






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






20. People that estimate various things






21. Increases






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






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






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






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






26. Choosing the number of accounting periods






27. International Accounting Standards Board.






28. Working totals






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. Cash account






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






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






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






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






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






36. Decreases






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






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






39. 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


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






41. Accounting Equation






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






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






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






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






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






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






48. Sole worker of your business






49. Accounting periods of less than a year.






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