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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 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






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






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






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






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






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






7. Accounts that explain why assets went down from operations






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






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






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






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






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






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






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






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






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






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






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






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






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






21. Outsders to whom the business owes money






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






23. Debts owned to people outside the company






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






25. The official list of all business accounts






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






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






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






29. A supply of items a business has on hand






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






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






32. 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






33. 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.






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






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






36. Assets that can be used to pay current liabilities






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






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






39. Recorded the cost as an asset






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






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






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






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






44. Accounts that explain why assets went up from operations






45. 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.






46. Income - Expenses = Net Income






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






48. An account that gets subtracted from an asset account






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






50. Assets that help a business or person make money