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






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






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






4. 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)






5. 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






6. Postponement of recognition of an expense already paid.






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






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






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

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10. Contains only balance sheet accounts.






11. Sole worker of your business






12. A net loss occurs






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






14. Revenues - Expenses






15. Their related asset accounts on the balance sheet






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






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






18. People that estimate various things






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






20. Working totals






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






22. 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.






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






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






25. Increases






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






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






28. The amount allocated to any one accounting period.






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






30. Cash account






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






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






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






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






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






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






37. 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.






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






39. As an expense and the corresponding liability accumulate.






40. Accounting periods of less than a year.






41. 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






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

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43. International Accounting Standards Board.






44. Accounting Equation






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






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






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






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






49. Contributed Capital + Retained Earnings

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