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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. A depr method that results in higher depr exp in an assets early years






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






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






4. An account that gets subtracted from an asset account






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






6. Assets that can be used to pay current liabilities






7. Income-expenses






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






9. Recorded the cost as an asset






10. Accounts that explain why assets went down from operations






11. Method of journalizing and posting accounts at the same time by recording transac vertically in columns






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






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






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






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






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






17. Assets that help a business or person make money






18. Outsders to whom the business owes money






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






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






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






22. Debts owned to people outside the company






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






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






25. The dollar amount written on the face of the note






26. Income - Expenses = Net Income






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






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






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






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






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






32. Accounts that explain why assets went up from operations






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






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






35. The amount of the historical cost of an asset that gets allocated over the useful life of the asset






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






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






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






39. A word that means a subtraction has occured






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






41. Economic resources that the business plans to use in the future to make money






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






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






44. 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.






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






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






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






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






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






50. A supply of items a business has on hand