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






2. The official list of all business accounts






3. Assets that can be used to pay current liabilities






4. Assets that help a business or person make money






5. Income-expenses






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






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






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






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






10. A supply of items a business has on hand






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






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






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






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






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






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






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






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






19. Outsders to whom the business owes money






20. A word that means a subtraction has occured






21. Income - Expenses = Net Income






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






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






24. Accounts that explain why assets went down from operations






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






26. 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






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






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






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






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






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






32. An account that gets subtracted from an asset account






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






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






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






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






37. 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






38. 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.






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






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






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






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






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






44. Accounts that explain why assets went up from operations






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






46. 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.






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






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






49. Debts owned to people outside the company






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