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CLEP Financial Accounting Vocab

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. The dollar amount written on the face of the note






2. An income account that explains the increase in business assets as a result of selling goods






3. The inventory system that averages the cost of all items in inventory and assigns that averaged cost the the items sold.






4. Non-operating exp or revenues come from transactions that are not part of normal biz operations






5. A note with an interest rate written on the face - whose face amount is the present value






6. The 12 month period a business used to report the results of its operatons






7. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.






8. That porition of the business the owner gets to keep after paying all creditors






9. Accounts that explain why assets went up from operations






10. The inventory method that increases the inventory account with every purchase and lowers the inventory with every sale.






11. Accounts that explain why assets went down from operations






12. The amount borrowed - or the principal. Interest-bearing notes show the present value as the face amount






13. The financial report that shows the result of business operations over a period of time






14. The amount of long-lived assets used up during operations






15. Where cash came from and where it went - Cash flow from operations - cash flow from investing activities - cash flow from financing activities - calculation of (1) net cash flow - and (2) cash - end of period






16. Assets that can be used to pay current liabilities






17. Money is 'expensed' if it is gone forever - if there remains no useful assert as a result of the spending. THe opposite of capitalized. `






18. Asset has not been sold but a gain or loss has occurred






19. A word that means a subtraction has occured






20. The cost of living while away from home of business






21. The amount borrowed plus the interest up to a maturity date






22. To sell a note to a bank that subtracts a discount - giving the seller the proceeds`






23. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.






24. A financial statement analysis technique in which one number is assigned 100% and all other numbers are expressed as a percentage of the first number. In balance sheets. the key number is total assets. In income statements - the key # is sales.






25. The contra-asset account that accumulates all the depreciation of long-lived assets over the years






26. When money is changed into another asset that helps the business make money






27. The official list of all business accounts






28. The cost of business airplane fairs - trains and long-distance buses






29. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `






30. Outsders to whom the business owes money






31. A supply of items a business has on hand






32. The natural period of time before a certain business activities tend to repeat -usually one year






33. Recorded the cost as an asset






34. Income-expenses






35. A place on the financial books to keep track of financial info that the owners want to know






36. Assets that help a business or person make money






37. The cost to the business of the goods that it sells






38. Money is 'expensed' if it is gone forever - if there remains no useful asset as a result of the spending. The opposite is CAPITALIZED






39. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers






40. Income - Expenses = Net Income






41. A tool to keep track of the ops and downs in account. The ups go on one side of the T and the downs go on the other






42. A financial statement that calculates an end-of-period balance of the owner's equity account






43. Debts that must be paid within one year or one operating cycle - whichever is longer






44. Contra-asset account that accumulates all the deprec of long lived assets over the years






45. The cost the the biz of the goods it sells






46. The interest rate written on the face of a note






47. The financial report that shows business assets - liabilities - and the owners equity on a particular day






48. Modified accelerated cost recovery syste - for which IRS tables tell the rate by which to multiply an assets historical cost






49. Usual method - starts with NI and uses the changes in the A&L accounts to adjust NI into cash flow from operations






50. The financial report that shows the result of biz operations over a period of time