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






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






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






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






5. Recorded the cost as an asset






6. Outsders to whom the business owes money






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






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






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






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






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






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






13. 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.






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






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






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






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






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






19. Assets that can be used to pay current liabilities






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






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






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






23. Accounts that explain why assets went down from operations






24. Income-expenses






25. 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






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






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






28. Accounts that explain why assets went up from operations






29. Debts owned to people outside the company






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






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






32. 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






33. Assets that help a business or person make money






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






35. An account that gets subtracted from an asset account






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






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






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






39. A word that means a subtraction has occured






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






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






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






43. Income - Expenses = Net Income






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






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






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






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






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






49. 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.






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