Test your basic knowledge |

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






2. Income - Expenses = Net Income






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






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






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






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






7. The official list of all business accounts






8. Debts owned to people outside the company






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






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






11. 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.






12. Income-expenses






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






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






15. Assets that help a business or person make money






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






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






18. An account that gets subtracted from an asset account






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






20. Outsders to whom the business owes money






21. 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






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






23. Accounts that explain why assets went down from operations






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






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






26. A word that means a subtraction has occured






27. Assets that can be used to pay current liabilities






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






29. Accounts that explain why assets went up from operations






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






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






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






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






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






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






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






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






38. A supply of items a business has on hand






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






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






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






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






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






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






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






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






47. 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.






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






49. 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






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