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Test your basic knowledge |
CLEP Financial Accounting Vocab
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Study First
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 cost the the biz of the goods it sells
Cost of goods sold
Net
Discount a note
Netted
2. A supply of items a business has on hand
Weighted average
Transportation expense
future value of a note
Inventory
3. 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.
liabilities
Net
Contra Account
Percentage Analysis
4. The inventory method that increases the inventory account with every purchase and lowers the inventory with every sale.
current liabilities
liabilities
Perpetual inventory method
future value of a note
5. The amount of long-lived assets used up during operations
Depreciation Expense
Expenses
Cost of goods sold
owners equity
6. When money is changed into another asset that helps the business make money
interest-bearing note
Netted
Capitalized
Chart of Accounts
7. Accounts that explain why assets went up from operations
Income
Balance sheet
Vertical Journal Entries
Weighted average
8. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `
Inventory
Netted
Direct method
Perpetual inventory method
9. Non-operating exp or revenues come from transactions that are not part of normal biz operations
Indirect method
Non-operating
Face interest
MACRS
10. An account that gets subtracted from an asset account
Contra Account
Expenses
Contra-asset account
Depreciation Expense
11. Income-expenses
Net income
current assets
Accumulated Depreciation
Transportation expense
12. Assets that help a business or person make money
Capital
Net income
Vertical Journal Entries
Face amount
13. The interest rate written on the face of a note
T-account
Chart of Accounts
Face interest
Income
14. The contra-asset account that accumulates all the depreciation of long-lived assets over the years
present value of a note
Face interest
Transportation expense
Accumulated Depreciation
15. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.
Face amount
Contra Account
Transportation expense
Netted
16. The cost of business airplane fairs - trains and long-distance buses
Contra-asset account
future value of a note
creditors
Transportation expense
17. The financial report that shows business assets - liabilities - and the owners equity on a particular day
creditors
Accelerated depr method
Balance sheet
Weighted average
18. Asset has not been sold but a gain or loss has occurred
unrealized gain/loss
Net
Discount a note
Accumulated Depreciation
19. An income account that explains the increase in business assets as a result of selling goods
Accelerated depr method
Sales
T-account
creditors
20. Method of journalizing and posting accounts at the same time by recording transac vertically in columns
Vertical Journal Entries
Accumulated Depreciation
Contra Account
Capitalized
21. A depr method that results in higher depr exp in an assets early years
Cash Flow Statement
Discount a note
Accelerated depr method
Weighted average
22. The amount of the historical cost of an asset that gets allocated over the useful life of the asset
Inventory
Cost of goods sold
Capital
Depreciable cost
23. The official list of all business accounts
creditors
Perpetual inventory method
Discount a note
Chart of Accounts
24. That porition of the business the owner gets to keep after paying all creditors
owners equity
Periodic inventory method
Netted
Capital
25. The financial report that shows the result of biz operations over a period of time
future value of a note
Travel Expense
Income statement
Depreciable cost
26. Economic resources that the business plans to use in the future to make money
Cash Flow Statement
unrealized gain/loss
Face amount
Assets
27. Contra-asset account that accumulates all the deprec of long lived assets over the years
Direct method
Accumulated Depreciation
present value of a note
Chart of Accounts
28. Debts that must be paid within one year or one operating cycle - whichever is longer
Inventory
Capital
Accumulated Depreciation
current liabilities
29. 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
Cash Flow Statement
Netted
Accumulated Depreciation
Capital
30. A word that means a subtraction has occured
Net
Accelerated depr method
Account
Netted
31. Accounts that explain why assets went down from operations
Accumulated Depreciation
Expenses
future value of a note
Draw (Withdrawl)
32. Assets that can be used to pay current liabilities
Weighted average
Net Income
Cost of goods sold
current assets
33. To sell a note to a bank that subtracts a discount - giving the seller the proceeds`
Cash Flow Statement
Capitalized
Discount a note
Vertical Journal Entries
34. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers
Netted
Expensed
Net Income
unrealized gain/loss
35. The natural period of time before a certain business activities tend to repeat -usually one year
Contra-asset account
operating cycle
Net
Net Income
36. The inventory system that averages the cost of all items in inventory and assigns that averaged cost the the items sold.
Perpetual inventory method
Weighted average
Discount a note
Netted
37. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.
Draw (Withdrawl)
Depreciation Expense
Cost of goods sold
fiscal year
38. Income - Expenses = Net Income
fiscal year
Income
Net
Net Income
39. The cost of living while away from home of business
Travel Expense
Net Income
Sales
Transportation expense
40. A note with an interest rate written on the face - whose face amount is the present value
Contra-asset account
Vertical Journal Entries
interest-bearing note
current assets
41. Money is 'expensed' if it is gone forever - if there remains no useful asset as a result of the spending. The opposite is CAPITALIZED
Netted
future value of a note
fiscal year
Expensed
42. Outsders to whom the business owes money
unrealized gain/loss
Percentage Analysis
creditors
Face interest
43. The amount borrowed - or the principal. Interest-bearing notes show the present value as the face amount
Net income
Contra-asset account
MACRS
present value of a note
44. The dollar amount written on the face of the note
Contra Account
Cash Flow Statement
Face amount
Accumulated Depreciation
45. A financial statement that calculates an end-of-period balance of the owner's equity account
Balance sheet
Cost of goods sold
Statement of Owners Equity
current assets
46. Recorded the cost as an asset
owners equity
Capitalized
Perpetual inventory method
Depreciation Expense
47. Debts owned to people outside the company
Net income
liabilities
Sales
Accumulated Depreciation
48. The financial report that shows the result of business operations over a period of time
Net Income
Net
Income Statement
Face interest
49. The 12 month period a business used to report the results of its operatons
fiscal year
creditors
future value of a note
Net income
50. Money is 'expensed' if it is gone forever - if there remains no useful assert as a result of the spending. THe opposite of capitalized. `
Discount a note
Accelerated depr method
Expensed
Sales