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






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






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






4. Revenues - Expenses






5. Sole worker of your business






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


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






8. 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.






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






10. Their related asset accounts on the balance sheet






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






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






13. People that estimate various things






14. 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






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






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






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






18. Contains only balance sheet accounts.






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






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






21. Contributed Capital + Retained Earnings


22. Lists all accounts and their balances






23. Working totals






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






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






26. Accounting Equation






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






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






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






30. As an expense and the corresponding liability accumulate.






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






32. Cash account






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






34. Decreases






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






36. Accounting periods of less than a year.






37. Postponement of recognition of an expense already paid.






38. The amount allocated to any one accounting period.






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






40. 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






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






42. Increases






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






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






45. Choosing the number of accounting periods






46. 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.






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






48. Deferral of an expense! (Except land)






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






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