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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. International Accounting Standards Board.






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






3. Used to accumulate the depreciation on each long-term asset






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






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






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






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






8. Contains only balance sheet accounts.






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






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






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






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






13. Contributed Capital + Retained Earnings

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






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






16. Postponement of recognition of an expense already paid.






17. 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)






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






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






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






21. Decreases






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






23. People that estimate various things






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






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






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






27. Their related asset accounts on the balance sheet






28. Sole worker of your business






29. Cash account






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






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






32. Deferral of an expense! (Except land)






33. 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






34. 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






35. A net loss occurs






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






37. Lists all accounts and their balances






38. Increases






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






40. The amount allocated to any one accounting period.






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






42. 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






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

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






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






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






47. As an expense and the corresponding liability accumulate.






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






49. Accounting periods of less than a year.






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