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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. A word that means a subtraction has occured






3. Debts owned to people outside the company






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






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






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






7. 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






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






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






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






11. The official list of all business accounts






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






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






14. 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






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.






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






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






18. Assets that help a business or person make money






19. Outsders to whom the business owes money






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






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






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






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






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






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






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






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






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






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






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






31. Accounts that explain why assets went up from operations






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






33. Accounts that explain why assets went down from operations






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






35. Income-expenses






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






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






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






39. A supply of items a business has on hand






40. An account that gets subtracted from an asset account






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






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






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






44. Assets that can be used to pay current liabilities






45. Recorded the cost as an asset






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






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






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






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






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