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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. Outsders to whom the business owes money






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






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






4. 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.






5. A supply of items a business has on hand






6. The official list of all business accounts






7. Accounts that explain why assets went up from operations






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. Debts owned to people outside the company






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






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






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






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






15. 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






16. An account that gets subtracted from an asset account






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






18. 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






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






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






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






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






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






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






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






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






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






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






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






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






31. Recorded the cost as an asset






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






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






34. A word that means a subtraction has occured






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






36. Accounts that explain why assets went down from operations






37. 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.






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






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






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






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






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






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






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






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






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






47. Assets that help a business or person make money






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






49. Income-expenses






50. Income - Expenses = Net Income