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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 cost the the biz of the goods it sells






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






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






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






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






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






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






8. 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






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






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






11. Debts owned to people outside the company






12. Income - Expenses = Net Income






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






14. 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.






15. Outsders to whom the business owes money






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






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






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






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






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






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






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






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






24. An account that gets subtracted from an asset account






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






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






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






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






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






30. Income-expenses






31. A supply of items a business has on hand






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






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






34. Assets that help a business or person make money






35. The official list of all business accounts






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






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






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






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






40. 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.






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






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






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






44. Assets that can be used to pay current liabilities






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






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






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






48. Recorded the cost as an asset






49. Accounts that explain why assets went up from operations






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