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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. Outsders to whom the business owes money






3. Assets that can be used to pay current liabilities






4. An account that gets subtracted from an asset account






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






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






7. Assets that help a business or person make money






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






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






10. The official list of all business accounts






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






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






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






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






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






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






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






18. 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.






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






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






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






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






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






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






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






26. A supply of items a business has on hand






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






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






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






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






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






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






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






34. Accounts that explain why assets went up from operations






35. Income-expenses






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






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






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






39. A word that means a subtraction has occured






40. 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.






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






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






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






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






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






46. 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






47. Recorded the cost as an asset






48. Debts owned to people outside the company






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






50. Income - Expenses = Net Income