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






2. Outsders to whom the business owes money






3. A supply of items a business has on hand






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






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






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






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






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






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






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






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






12. The official list of all business accounts






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






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






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. Assets that help a business or person make money






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






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






19. Income-expenses






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






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






22. 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






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






24. Recorded the cost as an asset






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






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






27. Assets that can be used to pay current liabilities






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






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






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






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






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






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






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






38. 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.






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






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






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






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






43. An account that gets subtracted from an asset account






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






45. Accounts that explain why assets went down from operations






46. Accounts that explain why assets went up from operations






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






48. Debts owned to people outside the company






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






50. Income - Expenses = Net Income