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