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






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






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

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4. 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






5. Sole worker of your business






6. Accounting periods of less than a year.






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






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






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






10. As an expense and the corresponding liability accumulate.






11. 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






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






13. Decreases






14. Decreases






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






17. Choosing the number of accounting periods






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






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






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






21. Revenues - Expenses






22. Increases






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






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






25. People that estimate various things






26. Their related asset accounts on the balance sheet






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






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






29. International Accounting Standards Board.






30. The amount allocated to any one accounting period.






31. Cash account






32. A net loss occurs






33. Contributed Capital + Retained Earnings

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






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






36. Working totals






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






38. Postponement of recognition of an expense already paid.






39. 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.






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






41. Contains only balance sheet accounts.






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






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






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






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






46. Lists all accounts and their balances






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






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






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






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