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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 official list of all business accounts






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






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






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






5. A word that means a subtraction has occured






6. Outsders to whom the business owes money






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






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






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






10. Accounts that explain why assets went up from operations






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






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






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






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






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






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






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






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






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






20. Income-expenses






21. Accounts that explain why assets went down from operations






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






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






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






25. An account that gets subtracted from an asset account






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






27. 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.






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






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






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






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






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






33. Assets that help a business or person make money






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






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






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






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






38. 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






39. Income - Expenses = Net Income






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






41. 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.






42. A supply of items a business has on hand






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






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






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






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






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






48. Debts owned to people outside the company






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






50. 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