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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. Increases






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






3. 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)






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






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






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






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






8. Accounting Equation






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

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






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






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






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






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. Accounting periods of less than a year.






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






18. Sole worker of your business






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






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






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






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






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






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






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






26. Working totals






27. The amount allocated to any one accounting period.






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






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

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30. 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.






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






32. A net loss occurs






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






34. 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.






35. International Accounting Standards Board.






36. 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






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






38. Decreases






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






40. Choosing the number of accounting periods






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






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






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






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






45. Cash account






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






47. Decreases






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






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






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







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Can you answer 50 questions in 15 minutes?


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