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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. Accounts that explain why assets went up from operations






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






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






4. Income-expenses






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






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






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






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






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






10. Assets that help a business or person make money






11. The official list of all business accounts






12. An account that gets subtracted from an asset account






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






14. 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






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






16. 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






17. Outsders to whom the business owes money






18. A supply of items a business has on hand






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






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






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






22. The inventory method that keeps track of merchandise costs in various purchases and contra-purchases accounts and then computes cost of goods sold on the income statement. Inventory on the books is adjusted only at year-end.






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






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






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






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






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






28. A word that means a subtraction has occured






29. 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.






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






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






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






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






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






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






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






37. Income - Expenses = Net Income






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






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






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






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






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






43. Assets that can be used to pay current liabilities






44. Accounts that explain why assets went down from operations






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






46. Recorded the cost as an asset






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






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






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






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







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