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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. 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






2. 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.






3. The official list of all business accounts






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






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






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






7. Accounts that explain why assets went up from operations






8. Assets that can be used to pay current liabilities






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






10. An account that gets subtracted from an asset account






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






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






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






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






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






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






17. Accounts that explain why assets went down from operations






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






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






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






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






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






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






24. Debts owned to people outside the company






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






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






27. A supply of items a business has on hand






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






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






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






31. Income - Expenses = Net Income






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






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






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






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






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






37. Outsders to whom the business owes money






38. Income-expenses






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






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






41. 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.






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






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






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






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






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






47. Assets that help a business or person make money






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






49. A word that means a subtraction has occured






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