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Test your basic knowledge |
CLEP Financial Accounting Vocab
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Study First
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
Contra Account
Direct method
operating cycle
Income Statement
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. `
Expensed
Discount a note
Statement of Owners Equity
Assets
3. Recorded the cost as an asset
Capital
Face interest
Capitalized
Periodic inventory method
4. The financial report that shows business assets - liabilities - and the owners equity on a particular day
Balance sheet
Periodic inventory method
operating cycle
Expensed
5. Income - Expenses = Net Income
Indirect method
Expensed
Net Income
Expensed
6. A financial statement that calculates an end-of-period balance of the owner's equity account
Depreciation Expense
fiscal year
Inventory
Statement of Owners Equity
7. The amount of long-lived assets used up during operations
Statement of Owners Equity
Depreciable cost
Depreciation Expense
Draw (Withdrawl)
8. The 12 month period a business used to report the results of its operatons
fiscal year
T-account
interest-bearing note
Cost of goods sold
9. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers
creditors
Netted
Income statement
Expensed
10. The dollar amount written on the face of the note
Face amount
Perpetual inventory method
Accelerated depr method
Income statement
11. Usual method - starts with NI and uses the changes in the A&L accounts to adjust NI into cash flow from operations
Indirect method
Non-operating
Transportation expense
Income Statement
12. The official list of all business accounts
Indirect method
Depreciable cost
Chart of Accounts
Net income
13. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.
Face amount
Depreciation Expense
Accelerated depr method
Contra Account
14. The interest rate written on the face of a note
Depreciable cost
Perpetual inventory method
Face interest
Inventory
15. The financial report that shows the result of biz operations over a period of time
Income statement
Inventory
Assets
Perpetual inventory method
16. Assets that can be used to pay current liabilities
Depreciation Expense
T-account
Face interest
current assets
17. A note with an interest rate written on the face - whose face amount is the present value
Cost of goods sold
interest-bearing note
creditors
liabilities
18. Outsders to whom the business owes money
creditors
MACRS
Depreciation Expense
Expensed
19. The cost the the biz of the goods it sells
Income statement
Depreciation Expense
current liabilities
Cost of goods sold
20. Accounts that explain why assets went up from operations
current liabilities
Depreciation Expense
owners equity
Income
21. An income account that explains the increase in business assets as a result of selling goods
Net
Perpetual inventory method
Sales
fiscal year
22. Debts that must be paid within one year or one operating cycle - whichever is longer
Chart of Accounts
current liabilities
creditors
Depreciation Expense
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
Income Statement
T-account
current assets
future value of a note
24. Method of journalizing and posting accounts at the same time by recording transac vertically in columns
Expensed
Vertical Journal Entries
interest-bearing note
Capitalized
25. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.
Draw (Withdrawl)
T-account
Cost of goods sold
present value of a note
26. An account that gets subtracted from an asset account
interest-bearing note
Contra-asset account
current liabilities
Income Statement
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
owners equity
Non-operating
Accelerated depr method
Cash Flow Statement
28. The amount borrowed - or the principal. Interest-bearing notes show the present value as the face amount
present value of a note
Transportation expense
Inventory
Travel Expense
29. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `
Balance sheet
Cost of goods sold
Accumulated Depreciation
Direct method
30. Economic resources that the business plans to use in the future to make money
Income Statement
MACRS
Assets
liabilities
31. The cost of living while away from home of business
Travel Expense
Chart of Accounts
interest-bearing note
Capitalized
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.
Draw (Withdrawl)
Percentage Analysis
Discount a note
operating cycle
33. To sell a note to a bank that subtracts a discount - giving the seller the proceeds`
Discount a note
current liabilities
fiscal year
Contra Account
34. A supply of items a business has on hand
Cost of goods sold
Inventory
Capitalized
Income Statement
35. The amount borrowed plus the interest up to a maturity date
Income statement
future value of a note
Expensed
Net income
36. The amount of the historical cost of an asset that gets allocated over the useful life of the asset
Expenses
Travel Expense
Accumulated Depreciation
Depreciable cost
37. The contra-asset account that accumulates all the depreciation of long-lived assets over the years
Perpetual inventory method
Contra-asset account
Accumulated Depreciation
Capital
38. Contra-asset account that accumulates all the deprec of long lived assets over the years
Accumulated Depreciation
Net
creditors
Expenses
39. A place on the financial books to keep track of financial info that the owners want to know
Account
Inventory
fiscal year
Net income
40. Income-expenses
Net income
Periodic inventory method
Accumulated Depreciation
Netted
41. Non-operating exp or revenues come from transactions that are not part of normal biz operations
Percentage Analysis
Income statement
Non-operating
Face amount
42. The inventory method that increases the inventory account with every purchase and lowers the inventory with every sale.
Discount a note
Periodic inventory method
Perpetual inventory method
liabilities
43. Accounts that explain why assets went down from operations
Capital
Statement of Owners Equity
Expenses
T-account
44. Debts owned to people outside the company
liabilities
Non-operating
T-account
unrealized gain/loss
45. The cost to the business of the goods that it sells
Discount a note
Income
Cost of goods sold
Depreciable cost
46. The financial report that shows the result of business operations over a period of time
Face interest
Income
Income Statement
Chart of Accounts
47. A depr method that results in higher depr exp in an assets early years
Accelerated depr method
Expensed
T-account
Face amount
48. When money is changed into another asset that helps the business make money
Weighted average
Periodic inventory method
Capitalized
Inventory
49. The cost of business airplane fairs - trains and long-distance buses
Net income
Expensed
Direct method
Transportation expense
50. A word that means a subtraction has occured
Netted
Net
Contra Account
Weighted average