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






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






3. Income-expenses






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






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






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






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






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






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






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






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






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






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






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






15. 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.






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






17. A supply of items a business has on hand






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






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






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






21. Debts owned to people outside the company






22. 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.






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






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






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






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






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






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






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






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






31. Accounts that explain why assets went down from operations






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






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






34. Accounts that explain why assets went up from operations






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






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






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






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






39. An account that gets subtracted from an asset account






40. Outsders to whom the business owes money






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






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






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






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






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






46. The official list of all business accounts






47. Assets that help a business or person make money






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






49. Recorded the cost as an asset






50. Assets that can be used to pay current liabilities