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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 cost the the biz of the goods it sells






2. A supply of items a business has on hand






3. 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.






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






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






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






7. Accounts that explain why assets went up from operations






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






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






10. An account that gets subtracted from an asset account






11. Income-expenses






12. Assets that help a business or person make money






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






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






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






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






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






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






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






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






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






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






23. The official list of all business accounts






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






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






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






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






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






29. 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






30. A word that means a subtraction has occured






31. Accounts that explain why assets went down from operations






32. Assets that can be used to pay current liabilities






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






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






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






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






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






38. Income - Expenses = Net Income






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






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






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






42. Outsders to whom the business owes money






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






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






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






46. Recorded the cost as an asset






47. Debts owned to people outside the company






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






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






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