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






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






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






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






5. Income - Expenses = Net Income






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






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






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






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






10. 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.






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






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






13. An account that gets subtracted from an asset account






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






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






16. 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






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






18. 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






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






20. The official list of all business accounts






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






22. Income-expenses






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






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






25. A supply of items a business has on hand






26. Recorded the cost as an asset






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






28. Assets that help a business or person make money






29. Accounts that explain why assets went up from operations






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






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






32. Outsders to whom the business owes money






33. Debts owned to people outside the company






34. Assets that can be used to pay current liabilities






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






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






37. 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.






38. A word that means a subtraction has occured






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






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






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






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






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






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






45. Accounts that explain why assets went down from operations






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






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






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






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






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