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






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






3. Income-expenses






4. A word that means a subtraction has occured






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






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






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






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






9. Assets that can be used to pay current liabilities






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






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






12. Accounts that explain why assets went up from operations






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






14. Income - Expenses = Net Income






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






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






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






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






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






20. A supply of items a business has on hand






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






22. 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.






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






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






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






26. Accounts that explain why assets went down from operations






27. The official list of all business accounts






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






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






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






31. Outsders to whom the business owes money






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






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






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






35. Debts owned to people outside the company






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






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






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






39. 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.






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






41. Assets that help a business or person make money






42. 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






43. 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






44. Recorded the cost as an asset






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






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






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






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






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






50. An account that gets subtracted from an asset account