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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 amount borrowed plus the interest up to a maturity date






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. An account that gets subtracted from an asset account






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






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






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






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






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






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






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






11. 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






12. 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






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






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






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






16. 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.






17. Recorded the cost as an asset






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






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






20. Assets that help a business or person make money






21. Accounts that explain why assets went down from operations






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






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






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






25. Outsders to whom the business owes money






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






27. The official list of all business accounts






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






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






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






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






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






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






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






35. Assets that can be used to pay current liabilities






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






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






38. A word that means a subtraction has occured






39. Accounts that explain why assets went up from operations






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






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






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






43. Income - Expenses = Net Income






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






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






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






47. Income-expenses






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






49. A supply of items a business has on hand






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