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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. A separate account that is paired with a related account






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






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






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






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






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






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






8. Deferral of an expense! (Except land)






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






10. Lists all accounts and their balances






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






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






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






14. Contains only balance sheet accounts.






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






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






17. 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.






18. Choosing the number of accounting periods






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






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






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






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






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






24. 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.






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






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






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






28. Sole worker of your business






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






30. Accounting Equation






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






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

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






34. Their related asset accounts on the balance sheet






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

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36. Accounting periods of less than a year.






37. People that estimate various things






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






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






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






41. Decreases






42. Working totals






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






44. 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






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






46. A net loss occurs






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






48. Postponement of recognition of an expense already paid.






49. As an expense and the corresponding liability accumulate.






50. 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






Can you answer 50 questions in 15 minutes?



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