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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 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.






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






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






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






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






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






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






8. Accounts that explain why assets went up from operations






9. Income-expenses






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






11. Assets that can be used to pay current liabilities






12. Recorded the cost as an asset






13. Assets that help a business or person make money






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






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






16. 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






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






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






19. An account that gets subtracted from an asset account






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






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






22. The official list of all business accounts






23. A supply of items a business has on hand






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






46. 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






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






48. A word that means a subtraction has occured






49. Outsders to whom the business owes money






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