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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. The contra-asset account that accumulates all the depreciation of long-lived assets over the years
Accumulated Depreciation
current assets
present value of a note
operating cycle
2. The amount of long-lived assets used up during operations
Cost of goods sold
Cost of goods sold
Depreciation Expense
operating cycle
3. Income-expenses
Accumulated Depreciation
owners equity
Net income
Cost of goods sold
4. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.
Depreciable cost
Contra Account
Sales
fiscal year
5. Debts that must be paid within one year or one operating cycle - whichever is longer
current liabilities
Sales
T-account
Accelerated depr method
6. A place on the financial books to keep track of financial info that the owners want to know
Account
Weighted average
Net income
Indirect method
7. The amount of the historical cost of an asset that gets allocated over the useful life of the asset
operating cycle
Depreciable cost
Transportation expense
creditors
8. Contra-asset account that accumulates all the deprec of long lived assets over the years
Balance sheet
liabilities
Income statement
Accumulated Depreciation
9. The cost of living while away from home of business
current assets
current liabilities
Travel Expense
Discount a note
10. The inventory method that increases the inventory account with every purchase and lowers the inventory with every sale.
MACRS
unrealized gain/loss
Perpetual inventory method
Net Income
11. The financial report that shows business assets - liabilities - and the owners equity on a particular day
Accumulated Depreciation
Accelerated depr method
MACRS
Balance sheet
12. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.
Capital
Chart of Accounts
Expenses
Draw (Withdrawl)
13. Non-operating exp or revenues come from transactions that are not part of normal biz operations
Direct method
Chart of Accounts
Non-operating
Indirect method
14. The dollar amount written on the face of the note
current liabilities
Accumulated Depreciation
Depreciation Expense
Face amount
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.
Percentage Analysis
Accumulated Depreciation
unrealized gain/loss
Vertical Journal Entries
16. A financial statement that calculates an end-of-period balance of the owner's equity account
Statement of Owners Equity
Income statement
creditors
Cost of goods sold
17. A supply of items a business has on hand
Net income
Inventory
Income statement
liabilities
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
Capitalized
Expensed
liabilities
Face amount
19. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `
Direct method
Travel Expense
Expenses
present value of a note
20. Economic resources that the business plans to use in the future to make money
Weighted average
Accelerated depr method
Sales
Assets
21. Debts owned to people outside the company
Capitalized
Accumulated Depreciation
Vertical Journal Entries
liabilities
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.
Periodic inventory method
Capitalized
Capitalized
Statement of Owners Equity
23. Asset has not been sold but a gain or loss has occurred
present value of a note
Weighted average
unrealized gain/loss
Cash Flow Statement
24. The inventory system that averages the cost of all items in inventory and assigns that averaged cost the the items sold.
liabilities
Weighted average
Net Income
Accelerated depr method
25. The financial report that shows the result of business operations over a period of time
Capitalized
Perpetual inventory method
Accelerated depr method
Income Statement
26. The amount borrowed plus the interest up to a maturity date
future value of a note
operating cycle
Face amount
Assets
27. A note with an interest rate written on the face - whose face amount is the present value
interest-bearing note
Net Income
Inventory
liabilities
28. To sell a note to a bank that subtracts a discount - giving the seller the proceeds`
Depreciable cost
Discount a note
Income Statement
Cash Flow Statement
29. The cost the the biz of the goods it sells
Net
Cost of goods sold
Travel Expense
Percentage Analysis
30. The interest rate written on the face of a note
Sales
owners equity
Face interest
Accumulated Depreciation
31. Accounts that explain why assets went down from operations
Cost of goods sold
Expensed
Expenses
MACRS
32. When money is changed into another asset that helps the business make money
Capitalized
Periodic inventory method
Cost of goods sold
operating cycle
33. The cost to the business of the goods that it sells
Balance sheet
Statement of Owners Equity
Cost of goods sold
Cash Flow Statement
34. Accounts that explain why assets went up from operations
Depreciation Expense
Net Income
future value of a note
Income
35. That porition of the business the owner gets to keep after paying all creditors
Contra-asset account
owners equity
Net Income
Capitalized
36. Modified accelerated cost recovery syste - for which IRS tables tell the rate by which to multiply an assets historical cost
Face interest
MACRS
Travel Expense
Inventory
37. The 12 month period a business used to report the results of its operatons
fiscal year
Net income
Contra Account
operating cycle
38. Usual method - starts with NI and uses the changes in the A&L accounts to adjust NI into cash flow from operations
Income
creditors
Account
Indirect method
39. An account that gets subtracted from an asset account
Contra-asset account
Travel Expense
Expensed
Net income
40. Outsders to whom the business owes money
Sales
Accelerated depr method
creditors
Income
41. The natural period of time before a certain business activities tend to repeat -usually one year
Depreciable cost
Capitalized
Sales
operating cycle
42. The financial report that shows the result of biz operations over a period of time
Face interest
Balance sheet
Cost of goods sold
Income statement
43. The cost of business airplane fairs - trains and long-distance buses
Expensed
Expensed
Transportation expense
present value of a note
44. An income account that explains the increase in business assets as a result of selling goods
future value of a note
Capital
Sales
Net Income
45. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers
Depreciation Expense
Face interest
Netted
Statement of Owners Equity
46. The official list of all business accounts
Depreciable cost
Chart of Accounts
Contra Account
owners equity
47. Assets that help a business or person make money
Income statement
owners equity
Draw (Withdrawl)
Capital
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. `
Expensed
Direct method
Net
Netted
49. Recorded the cost as an asset
Statement of Owners Equity
Capitalized
Sales
Net income
50. Assets that can be used to pay current liabilities
Cash Flow Statement
Expensed
current assets
Balance sheet