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






2. 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)






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

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4. 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.






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






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






7. Decreases






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






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






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






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






12. Decreases






13. As an expense and the corresponding liability accumulate.






14. Accounting periods of less than a year.






15. Deferral of an expense! (Except land)






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






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






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






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






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






21. Revenues - Expenses






22. 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






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






24. Lists all accounts and their balances






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






26. Sole worker of your business






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






28. Increases






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






30. The amount allocated to any one accounting period.






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






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






33. 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






34. Contributed Capital + Retained Earnings

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






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






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






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






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






40. Working totals






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






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






43. A net loss occurs






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






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






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

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47. Postponement of recognition of an expense already paid.






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






49. Cash account






50. Their related asset accounts on the balance sheet







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Can you answer 50 questions in 15 minutes?


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