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






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






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






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






5. As an expense and the corresponding liability accumulate.






6. 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.






7. Decreases






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






9. 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


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






11. A net loss occurs






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






13. Contains only balance sheet accounts.






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






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






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






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






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






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






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






21. The amount allocated to any one accounting period.






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






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






24. 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


25. People that estimate various things






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






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






28. Decreases






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






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






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






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






33. Lists all accounts and their balances






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






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






36. Deferral of an expense! (Except land)






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






38. 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






39. Contributed Capital + Retained Earnings

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


40. Cash account






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






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






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






44. Revenues - Expenses






45. 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






46. Increases






47. Choosing the number of accounting periods






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






49. 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






50. 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.