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






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






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






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






5. Debts owned to people outside the company






6. Income-expenses






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






8. Assets that can be used to pay current liabilities






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






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






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






12. Accounts that explain why assets went down from operations






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






14. The official list of all business accounts






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






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






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






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






19. 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






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






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






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






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






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






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






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






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






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






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






30. 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.






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






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






33. An account that gets subtracted from an asset account






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






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






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






37. Outsders to whom the business owes money






38. Assets that help a business or person make money






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






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






41. A word that means a subtraction has occured






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






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






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






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






46. Recorded the cost as an asset






47. A supply of items a business has on hand






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






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






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