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






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






3. Recorded the cost as an asset






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






5. Income - Expenses = Net Income






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






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






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






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






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






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






12. The official list of all business accounts






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






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






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






16. Assets that can be used to pay current liabilities






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






18. Outsders to whom the business owes money






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






20. Accounts that explain why assets went up from operations






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






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






23. 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






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






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






26. An account that gets subtracted from an asset account






27. 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






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






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






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






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






32. 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.






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






34. A supply of items a business has on hand






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






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






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






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






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






40. Income-expenses






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






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






43. Accounts that explain why assets went down from operations






44. Debts owned to people outside the company






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






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






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






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 word that means a subtraction has occured