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






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






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






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






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






6. 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.






7. Assets that help a business or person make money






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






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






10. Debts owned to people outside the company






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






12. An account that gets subtracted from an asset account






13. 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






14. The official list of all business accounts






15. Income-expenses






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






17. Outsders to whom the business owes money






18. A word that means a subtraction has occured






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






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






21. Assets that can be used to pay current liabilities






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






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






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






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






26. 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






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






28. Accounts that explain why assets went down from operations






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






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






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






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






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






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






35. Accounts that explain why assets went up from operations






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






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






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






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






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






41. A supply of items a business has on hand






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






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






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






45. 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.






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






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






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






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






50. Recorded the cost as an asset







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