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


2. Decreases






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






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






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






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






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






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






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






10. A net loss occurs






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






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






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






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






15. Cash account






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






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






18. Accounting periods of less than a year.






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






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






21. 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






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






23. Contains only balance sheet accounts.






24. 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)






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






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






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






28. 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






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






30. As an expense and the corresponding liability accumulate.






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






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






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






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






35. Contributed Capital + Retained Earnings


36. Lists all accounts and their balances






37. 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






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






39. 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.






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






41. People that estimate various things






42. The amount allocated to any one accounting period.






43. Revenues - Expenses






44. International Accounting Standards Board.






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






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






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


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






49. Working totals






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