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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. Assets that can be used to pay current liabilities






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






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






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






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






6. Accounts that explain why assets went up from operations






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






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






9. 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.






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






11. Accounts that explain why assets went down from operations






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






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






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






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






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






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






18. A supply of items a business has on hand






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






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






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






22. 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






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






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






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






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






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






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






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






30. Income-expenses






31. 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.






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






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






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






35. Assets that help a business or person make money






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






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






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






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






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






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






42. An account that gets subtracted from an asset account






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






44. The official list of all business accounts






45. Recorded the cost as an asset






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






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






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






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






50. Outsders to whom the business owes money