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