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






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






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






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






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






6. 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.






7. 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






8. Income-expenses






9. Accounts that explain why assets went up from operations






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






11. 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.






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






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






14. Assets that help a business or person make money






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






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






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






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






19. Income - Expenses = Net Income






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






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






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






23. An account that gets subtracted from an asset account






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






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






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






27. The official list of all business accounts






28. Assets that can be used to pay current liabilities






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






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






31. Recorded the cost as an asset






32. Accounts that explain why assets went down from operations






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






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






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






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






37. Debts owned to people outside the company






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






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






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






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






42. Outsders to whom the business owes money






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






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






45. A word that means a subtraction has occured






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






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






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






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






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