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






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






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






4. 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






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






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






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






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






9. Lists all accounts and their balances






10. International Accounting Standards Board.






11. Contains only balance sheet accounts.






12. The amount allocated to any one accounting period.






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






14. A net loss occurs






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






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






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






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






19. Contributed Capital + Retained Earnings

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






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






22. People that estimate various things






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






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






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






26. Choosing the number of accounting periods






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






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






29. Decreases






30. Their related asset accounts on the balance sheet






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






32. 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






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






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






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






36. Increases






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

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38. Decreases






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






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






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






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






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






44. As an expense and the corresponding liability accumulate.






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






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






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






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






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

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50. 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.