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






2. Outsders to whom the business owes money






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






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






5. 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.






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






7. Recorded the cost as an asset






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






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






10. 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






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






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






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






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






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






16. An account that gets subtracted from an asset account






17. Income - Expenses = Net Income






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






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






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






21. Debts owned to people outside the company






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






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






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






25. A word that means a subtraction has occured






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






27. Assets that can be used to pay current liabilities






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






29. 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






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






31. Accounts that explain why assets went down from operations






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






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






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






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






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






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






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






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






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






41. A supply of items a business has on hand






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






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






44. 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.






45. Accounts that explain why assets went up from operations






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






47. Assets that help a business or person make money






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






49. Income-expenses






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