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






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






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






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






5. Income - Expenses = Net Income






6. A word that means a subtraction has occured






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






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






9. Outsders to whom the business owes money






10. Accounts that explain why assets went up from operations






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






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






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






14. Accounts that explain why assets went down from operations






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






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






17. Recorded the cost as an asset






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






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






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






21. An account that gets subtracted from an asset account






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






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






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






25. Assets that help a business or person make money






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






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






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






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






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






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






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






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






34. 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.






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






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






37. 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






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






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






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






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






42. 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.






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






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






45. The official list of all business accounts






46. A supply of items a business has on hand






47. Debts owned to people outside the company






48. Assets that can be used to pay current liabilities






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






50. Income-expenses