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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 financial report that shows business assets - liabilities - and the owners equity on a particular day
Accelerated depr method
Statement of Owners Equity
MACRS
Balance sheet
2. The official list of all business accounts
Contra Account
Transportation expense
Chart of Accounts
Capitalized
3. Assets that can be used to pay current liabilities
Weighted average
Income Statement
current assets
Non-operating
4. Assets that help a business or person make money
Expensed
fiscal year
Discount a note
Capital
5. Income-expenses
Cash Flow Statement
Expensed
Net income
Depreciation Expense
6. Method of journalizing and posting accounts at the same time by recording transac vertically in columns
Vertical Journal Entries
Weighted average
Draw (Withdrawl)
Income Statement
7. Non-operating exp or revenues come from transactions that are not part of normal biz operations
Cost of goods sold
Non-operating
current assets
Indirect method
8. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.
interest-bearing note
Net Income
Draw (Withdrawl)
Depreciable cost
9. To sell a note to a bank that subtracts a discount - giving the seller the proceeds`
Capital
Accumulated Depreciation
Perpetual inventory method
Discount a note
10. A supply of items a business has on hand
Balance sheet
Depreciation Expense
Net income
Inventory
11. Usual method - starts with NI and uses the changes in the A&L accounts to adjust NI into cash flow from operations
present value of a note
Indirect method
Non-operating
current liabilities
12. Money is 'expensed' if it is gone forever - if there remains no useful assert as a result of the spending. THe opposite of capitalized. `
Inventory
Non-operating
Expensed
Accelerated depr method
13. Modified accelerated cost recovery syste - for which IRS tables tell the rate by which to multiply an assets historical cost
Travel Expense
MACRS
Face amount
Assets
14. The natural period of time before a certain business activities tend to repeat -usually one year
Balance sheet
operating cycle
Expensed
Cash Flow Statement
15. The 12 month period a business used to report the results of its operatons
Cost of goods sold
fiscal year
T-account
current assets
16. Asset has not been sold but a gain or loss has occurred
unrealized gain/loss
creditors
Expensed
Balance sheet
17. The cost the the biz of the goods it sells
current liabilities
Income
operating cycle
Cost of goods sold
18. The financial report that shows the result of biz operations over a period of time
fiscal year
Travel Expense
interest-bearing note
Income statement
19. Outsders to whom the business owes money
Depreciation Expense
Capital
creditors
future value of a note
20. A word that means a subtraction has occured
Chart of Accounts
Net
unrealized gain/loss
Cost of goods sold
21. Income - Expenses = Net Income
Capitalized
Cost of goods sold
Net Income
future value of a note
22. The cost of business airplane fairs - trains and long-distance buses
Cost of goods sold
Depreciation Expense
present value of a note
Transportation expense
23. The inventory method that increases the inventory account with every purchase and lowers the inventory with every sale.
Perpetual inventory method
creditors
Expensed
interest-bearing note
24. Accounts that explain why assets went down from operations
Periodic inventory method
Contra-asset account
MACRS
Expenses
25. The inventory system that averages the cost of all items in inventory and assigns that averaged cost the the items sold.
Depreciable cost
Weighted average
unrealized gain/loss
Expenses
26. 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
Travel Expense
Capitalized
Accumulated Depreciation
T-account
27. The amount borrowed plus the interest up to a maturity date
Weighted average
future value of a note
Percentage Analysis
Cost of goods sold
28. The financial report that shows the result of business operations over a period of time
Income
Income Statement
interest-bearing note
current liabilities
29. The amount borrowed - or the principal. Interest-bearing notes show the present value as the face amount
Account
Accelerated depr method
Expenses
present value of a note
30. Debts that must be paid within one year or one operating cycle - whichever is longer
future value of a note
Sales
unrealized gain/loss
current liabilities
31. The amount of long-lived assets used up during operations
Draw (Withdrawl)
Transportation expense
Depreciation Expense
Sales
32. An account that gets subtracted from an asset account
Netted
Contra-asset account
Inventory
Direct method
33. When money is changed into another asset that helps the business make money
Capitalized
Netted
owners equity
Cash Flow Statement
34. A depr method that results in higher depr exp in an assets early years
Perpetual inventory method
Expensed
Income
Accelerated depr method
35. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `
Direct method
Weighted average
present value of a note
Capitalized
36. Contra-asset account that accumulates all the deprec of long lived assets over the years
Accumulated Depreciation
future value of a note
Direct method
Non-operating
37. 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
Draw (Withdrawl)
Cost of goods sold
Cash Flow Statement
Accumulated Depreciation
38. 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.
Depreciable cost
Net income
Periodic inventory method
Cost of goods sold
39. An income account that explains the increase in business assets as a result of selling goods
Netted
Perpetual inventory method
Weighted average
Sales
40. The cost of living while away from home of business
liabilities
Percentage Analysis
Travel Expense
current assets
41. A financial statement that calculates an end-of-period balance of the owner's equity account
Netted
Periodic inventory method
Statement of Owners Equity
Weighted average
42. A place on the financial books to keep track of financial info that the owners want to know
Account
Transportation expense
Face amount
Weighted average
43. The amount of the historical cost of an asset that gets allocated over the useful life of the asset
Depreciable cost
Weighted average
current liabilities
owners equity
44. Accounts that explain why assets went up from operations
Chart of Accounts
T-account
Cost of goods sold
Income
45. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers
Accumulated Depreciation
Capitalized
Netted
Expenses
46. 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.
Draw (Withdrawl)
Inventory
Face interest
Percentage Analysis
47. The interest rate written on the face of a note
current assets
Face amount
future value of a note
Face interest
48. The contra-asset account that accumulates all the depreciation of long-lived assets over the years
Accumulated Depreciation
current assets
Assets
creditors
49. Debts owned to people outside the company
liabilities
T-account
Chart of Accounts
Accelerated depr method
50. The cost to the business of the goods that it sells
Chart of Accounts
Accelerated depr method
Cost of goods sold
Capitalized