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






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






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






4. Income - Expenses = Net Income






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






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






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






8. Assets that help a business or person make money






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






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






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






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






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






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






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






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






17. Accounts that explain why assets went up from operations






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






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






20. Outsders to whom the business owes money






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






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






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






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






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






26. Income-expenses






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






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






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






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






31. 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.






32. Recorded the cost as an asset






33. A supply of items a business has on hand






34. Debts owned to people outside the company






35. 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






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






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






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






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






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






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






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






43. Accounts that explain why assets went down from operations






44. The official list of all business accounts






45. Assets that can be used to pay current liabilities






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






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






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






49. A word that means a subtraction has occured






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