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






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






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






4. Accounts that explain why assets went down from operations






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






6. Recorded the cost as an asset






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






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






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






10. Debts owned to people outside the company






11. A supply of items a business has on hand






12. An account that gets subtracted from an asset account






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






15. 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.






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






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






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






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






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






21. Accounts that explain why assets went up from operations






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






23. A word that means a subtraction has occured






24. Income-expenses






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






26. Assets that help a business or person make money






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






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






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






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






31. Assets that can be used to pay current liabilities






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






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






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






35. 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






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






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






38. Outsders to whom the business owes money






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






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






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






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






43. 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






44. Income - Expenses = Net Income






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






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






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






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






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






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