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






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






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






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






5. Revenues - Expenses






6. Postponement of recognition of an expense already paid.






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






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






9. Working totals






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

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






12. People that estimate various things






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






14. Contributed Capital + Retained Earnings

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






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






17. Sole worker of your business






18. Decreases






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






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






21. Decreases






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






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






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






25. As an expense and the corresponding liability accumulate.






26. 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






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






28. Contains only balance sheet accounts.






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






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






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






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






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






34. Accounting Equation






35. 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






36. International Accounting Standards Board.






37. Cash account






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






39. 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






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






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






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






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






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






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






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






48. Increases






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






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







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Can you answer 50 questions in 15 minutes?


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