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CLEP Financial Accounting

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 separate account that is paired with a related account






2. The difficulty of deciding when a business transaction should be recorded






3. The manipulation of revenues and expenses to achieve a specific outcome.






4. People that estimate various things






5. Government Accounting Standards Board - similar to FASB - issues accounting standards for state and local governments.






6. The estimation of business's net income in terms of accounting periods.






7. Their related asset accounts on the balance sheet






8. Choosing the number of accounting periods






9. When title to merchandise passes from the supplier to the purchaser and creates an obligation to pay.






10. Common Stock + Retained Earnings - Dividends + Revenues - Expenses

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11. Determines that all temporary accounts have zero balances and to double check that total debits = total credits






12. A net loss occurs






13. The practice of recording transactions at exchange price at the point of recognition.






14. Generally Accepted Accounting Principles - or guidelines for financial accounting.






15. Increases






16. Contributed Capital + Retained Earnings

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17. As an expense and the corresponding liability accumulate.






18. Wages - Interest - and Income taxes that have been incurred but have not been recorded during an accounting period.






19. Payments received in advance - and deposits made on goods and services






20. Determines corporate policy - declares dividends and appoints management.






21. If you're having a bad year - to dump everything into something else like pensions

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22. Separate legal entities - and the corporation can enter contracts and also be sued. Stockholder's cannot be sued.






23. Used to accumulate the depreciation on each long-term asset






24. The amount allocated to any one accounting period.






25. Decreases






26. Companies present annual financial statements on the assumption that the business will continue to operate indefinitely






27. Revenues that a company has earned but for which no entry has been made in the accounting records






28. Financial Accounting Standards Board - Designed by SEC to develop rules on accounting practice.






29. Cash account






30. Persuasive evidence of arrangement - Seller's price is fixed or determinable - Product or service has been delivered - Collectibility is reasonably assured






31. International Accounting Standards Board.






32. A body of people set up by Congress who protect the public by regulating the issuing - buying - and selling of stocks in the US.






33. Customer buys a service - company pays an employee for service - company performs service






34. Accounting periods of less than a year.






35. Sole worker of your business






36. Deals with all techniques accountants use to apply the matching rule: Recording revenue when they are earned - Recording expenses when they are incurred - More closely related to profitability - Adjusting the accounts






37. Working totals






38. Summarizes revenues earned and expenses incurred by a business over an accounting period. (Shows whether a business achieved its profitability goal)...Revenues - Expenses - Income taxes






39. A 12 month accounting period (Vary depending on slack seasons)






40. When an entity sends out a product to a distributor and takes a certain percentage for what they sell it for (Usually occurs when they have excess inventory)






41. Deferral of an expense! (Except land)






42. At a specific point in time (Certain Date)....Assets - Liabilities - Stockholder's equity.






43. Focuses on assigning a monetary value to a business transaction and accounting for assets and liabilities.






44. Decreases






45. Accounting Equation






46. Unless there is evidence to the contrary - the accountant assumed that the business will continue to operate indefinitely






47. Revenue that a company has earned for providing a service but for which it has not billed or been paid by the end of the accounting period.






48. customer inquires about availability of service -company hires new employee -company signs contract to provide service in future






49. Net income on the income statement - and profitability comparisons from one accounting period to the next.






50. Close the revenues account - Close the expense account - Close the income summary account - Close the dividends account







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Can you answer 50 questions in 15 minutes?


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