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Test your basic knowledge |
CLEP Financial Accounting Vocab
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Study First
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 amount of long-lived assets used up during operations
Capitalized
Inventory
Direct method
Depreciation Expense
2. A financial statement that calculates an end-of-period balance of the owner's equity account
Chart of Accounts
Statement of Owners Equity
creditors
Net Income
3. Money is 'expensed' if it is gone forever - if there remains no useful assert as a result of the spending. THe opposite of capitalized. `
Expensed
Contra-asset account
Balance sheet
Contra Account
4. The 12 month period a business used to report the results of its operatons
fiscal year
Capitalized
Discount a note
Balance sheet
5. Recorded the cost as an asset
Capitalized
Percentage Analysis
Expensed
Travel Expense
6. The cost the the biz of the goods it sells
Expenses
unrealized gain/loss
Cost of goods sold
Transportation expense
7. 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
Cash Flow Statement
current assets
Income
operating cycle
8. The financial report that shows the result of business operations over a period of time
Balance sheet
owners equity
Income Statement
Perpetual inventory method
9. The official list of all business accounts
unrealized gain/loss
Income
Chart of Accounts
owners equity
10. 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.
Face amount
present value of a note
Expensed
Percentage Analysis
11. When money is changed into another asset that helps the business make money
Non-operating
Account
Capitalized
Expensed
12. Assets that help a business or person make money
creditors
Capital
Face interest
Net
13. To sell a note to a bank that subtracts a discount - giving the seller the proceeds`
Cost of goods sold
Face interest
Discount a note
Net Income
14. A place on the financial books to keep track of financial info that the owners want to know
Cash Flow Statement
Account
Contra Account
Netted
15. Income-expenses
Net income
Cost of goods sold
Accelerated depr method
Accumulated Depreciation
16. Outsders to whom the business owes money
Capitalized
Netted
creditors
Periodic inventory method
17. An income account that explains the increase in business assets as a result of selling goods
Sales
fiscal year
Accumulated Depreciation
Contra Account
18. Debts that must be paid within one year or one operating cycle - whichever is longer
Discount a note
Net Income
current liabilities
Travel Expense
19. The inventory method that increases the inventory account with every purchase and lowers the inventory with every sale.
Perpetual inventory method
MACRS
Income
fiscal year
20. Debts owned to people outside the company
liabilities
Transportation expense
Income
Accelerated depr method
21. The interest rate written on the face of a note
Accumulated Depreciation
Travel Expense
Accumulated Depreciation
Face interest
22. 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
T-account
future value of a note
Cash Flow Statement
Statement of Owners Equity
23. The amount borrowed plus the interest up to a maturity date
fiscal year
Sales
Cost of goods sold
future value of a note
24. A word that means a subtraction has occured
Account
T-account
Net
Depreciable cost
25. Non-operating exp or revenues come from transactions that are not part of normal biz operations
Non-operating
Cost of goods sold
Balance sheet
Accelerated depr method
26. Money is 'expensed' if it is gone forever - if there remains no useful asset as a result of the spending. The opposite is CAPITALIZED
Travel Expense
Net
Income Statement
Expensed
27. Method of journalizing and posting accounts at the same time by recording transac vertically in columns
Income
interest-bearing note
Vertical Journal Entries
Income statement
28. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.
Expenses
Draw (Withdrawl)
Discount a note
Weighted average
29. The amount of the historical cost of an asset that gets allocated over the useful life of the asset
Cost of goods sold
present value of a note
Cash Flow Statement
Depreciable cost
30. That porition of the business the owner gets to keep after paying all creditors
Cost of goods sold
owners equity
Draw (Withdrawl)
Periodic inventory method
31. The natural period of time before a certain business activities tend to repeat -usually one year
Weighted average
Vertical Journal Entries
operating cycle
liabilities
32. Modified accelerated cost recovery syste - for which IRS tables tell the rate by which to multiply an assets historical cost
MACRS
Vertical Journal Entries
Percentage Analysis
Cost of goods sold
33. A depr method that results in higher depr exp in an assets early years
Net income
Sales
Accelerated depr method
Capitalized
34. Usual method - starts with NI and uses the changes in the A&L accounts to adjust NI into cash flow from operations
Accumulated Depreciation
Indirect method
future value of a note
Balance sheet
35. The cost to the business of the goods that it sells
Sales
Cost of goods sold
Face interest
Net income
36. The cost of business airplane fairs - trains and long-distance buses
Capitalized
Transportation expense
Percentage Analysis
Discount a note
37. Income - Expenses = Net Income
Net Income
future value of a note
Indirect method
Accumulated Depreciation
38. Accounts that explain why assets went up from operations
fiscal year
Depreciation Expense
Income
Sales
39. The inventory system that averages the cost of all items in inventory and assigns that averaged cost the the items sold.
Weighted average
Net
Accumulated Depreciation
Accelerated depr method
40. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.
Netted
Contra Account
Expenses
Face interest
41. Asset has not been sold but a gain or loss has occurred
Weighted average
Income Statement
unrealized gain/loss
Depreciation Expense
42. Contra-asset account that accumulates all the deprec of long lived assets over the years
unrealized gain/loss
Capitalized
Accumulated Depreciation
Percentage Analysis
43. The financial report that shows the result of biz operations over a period of time
Perpetual inventory method
Transportation expense
operating cycle
Income statement
44. The cost of living while away from home of business
Contra Account
Direct method
current liabilities
Travel Expense
45. A supply of items a business has on hand
Net
Periodic inventory method
Inventory
fiscal year
46. The dollar amount written on the face of the note
Accumulated Depreciation
Netted
Face amount
unrealized gain/loss
47. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `
Direct method
Expenses
Chart of Accounts
Sales
48. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers
Netted
Sales
Capitalized
Cash Flow Statement
49. A note with an interest rate written on the face - whose face amount is the present value
unrealized gain/loss
Depreciable cost
Expensed
interest-bearing note
50. Assets that can be used to pay current liabilities
Accumulated Depreciation
current assets
Income Statement
Inventory