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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. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `
Non-operating
unrealized gain/loss
Transportation expense
Direct method
2. To sell a note to a bank that subtracts a discount - giving the seller the proceeds`
Depreciation Expense
Periodic inventory method
Discount a note
Depreciable cost
3. Outsders to whom the business owes money
creditors
Capital
Net Income
Travel Expense
4. Money is 'expensed' if it is gone forever - if there remains no useful asset as a result of the spending. The opposite is CAPITALIZED
Transportation expense
Weighted average
Expensed
Non-operating
5. A place on the financial books to keep track of financial info that the owners want to know
future value of a note
Account
present value of a note
Non-operating
6. Debts that must be paid within one year or one operating cycle - whichever is longer
Depreciation Expense
Discount a note
T-account
current liabilities
7. 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
Draw (Withdrawl)
Netted
Accumulated Depreciation
8. Assets that help a business or person make money
liabilities
Income statement
Face amount
Capital
9. Income-expenses
Non-operating
future value of a note
Net income
Expenses
10. A supply of items a business has on hand
Inventory
Accumulated Depreciation
Balance sheet
Net income
11. The natural period of time before a certain business activities tend to repeat -usually one year
operating cycle
Transportation expense
Expensed
Sales
12. Accounts that explain why assets went up from operations
Accumulated Depreciation
Income
Balance sheet
unrealized gain/loss
13. The amount of the historical cost of an asset that gets allocated over the useful life of the asset
T-account
Face amount
Depreciable cost
Sales
14. Contra-asset account that accumulates all the deprec of long lived assets over the years
Net
Accumulated Depreciation
Capitalized
Face amount
15. 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
Inventory
Capital
Cash Flow Statement
Income statement
16. Accounts that explain why assets went down from operations
Contra Account
liabilities
Expenses
Netted
17. Usual method - starts with NI and uses the changes in the A&L accounts to adjust NI into cash flow from operations
Income statement
fiscal year
Indirect method
Weighted average
18. Modified accelerated cost recovery syste - for which IRS tables tell the rate by which to multiply an assets historical cost
Chart of Accounts
MACRS
Income statement
Inventory
19. The cost to the business of the goods that it sells
fiscal year
Perpetual inventory method
Cost of goods sold
Net income
20. Income - Expenses = Net Income
Net Income
Netted
Income Statement
Non-operating
21. The interest rate written on the face of a note
Face interest
liabilities
Depreciation Expense
Net Income
22. The amount borrowed - or the principal. Interest-bearing notes show the present value as the face amount
present value of a note
Expensed
liabilities
Cash Flow Statement
23. An account that gets subtracted from an asset account
Net
Contra-asset account
Travel Expense
Inventory
24. Debts owned to people outside the company
Capitalized
MACRS
liabilities
interest-bearing note
25. Method of journalizing and posting accounts at the same time by recording transac vertically in columns
fiscal year
Vertical Journal Entries
Accumulated Depreciation
Weighted average
26. The cost of business airplane fairs - trains and long-distance buses
Capital
Transportation expense
Cash Flow Statement
Expensed
27. The financial report that shows the result of biz operations over a period of time
Capital
Income statement
Income
Net income
28. The official list of all business accounts
Net Income
Accumulated Depreciation
Chart of Accounts
Draw (Withdrawl)
29. The amount of long-lived assets used up during operations
Face interest
Face amount
Depreciation Expense
Sales
30. The 12 month period a business used to report the results of its operatons
Capitalized
Percentage Analysis
fiscal year
Expensed
31. A depr method that results in higher depr exp in an assets early years
Accelerated depr method
Statement of Owners Equity
Depreciation Expense
Balance sheet
32. The inventory system that averages the cost of all items in inventory and assigns that averaged cost the the items sold.
Weighted average
Contra-asset account
Discount a note
Expensed
33. The financial report that shows business assets - liabilities - and the owners equity on a particular day
Balance sheet
Perpetual inventory method
Capitalized
Account
34. Economic resources that the business plans to use in the future to make money
Assets
Sales
Periodic inventory method
Capitalized
35. A note with an interest rate written on the face - whose face amount is the present value
interest-bearing note
Draw (Withdrawl)
Indirect method
unrealized gain/loss
36. Assets that can be used to pay current liabilities
Cash Flow Statement
liabilities
Income
current assets
37. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.
Cost of goods sold
Draw (Withdrawl)
Sales
Face amount
38. That porition of the business the owner gets to keep after paying all creditors
interest-bearing note
Account
Contra Account
owners equity
39. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers
Accumulated Depreciation
Netted
Vertical Journal Entries
Net income
40. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.
Depreciation Expense
Contra Account
Expensed
Expensed
41. The cost of living while away from home of business
Expenses
unrealized gain/loss
Travel Expense
Account
42. 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.
Assets
owners equity
Periodic inventory method
Indirect method
43. Asset has not been sold but a gain or loss has occurred
unrealized gain/loss
Inventory
MACRS
Expensed
44. 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
T-account
Perpetual inventory method
interest-bearing note
unrealized gain/loss
45. 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.
Percentage Analysis
Contra-asset account
Direct method
Cost of goods sold
46. Recorded the cost as an asset
Capitalized
Transportation expense
interest-bearing note
Sales
47. An income account that explains the increase in business assets as a result of selling goods
Cost of goods sold
Sales
Income statement
Cost of goods sold
48. When money is changed into another asset that helps the business make money
Net
operating cycle
Capitalized
Percentage Analysis
49. A financial statement that calculates an end-of-period balance of the owner's equity account
owners equity
Face amount
Accelerated depr method
Statement of Owners Equity
50. The dollar amount written on the face of the note
unrealized gain/loss
Expensed
Face amount
Contra Account