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






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






3. Outsders to whom the business owes money






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






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






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






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






8. Assets that help a business or person make money






9. Income-expenses






10. A supply of items a business has on hand






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






12. Accounts that explain why assets went up from operations






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






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






15. 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






16. Accounts that explain why assets went down from operations






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






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






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






20. Income - Expenses = Net Income






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






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






23. An account that gets subtracted from an asset account






24. Debts owned to people outside the company






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






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






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






28. The official list of all business accounts






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






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






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






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






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






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






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






36. Assets that can be used to pay current liabilities






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






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






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






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






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






42. 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.






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






44. 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






45. 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.






46. Recorded the cost as an asset






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






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






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






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