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