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






2. Sole worker of your business






3. Choosing the number of accounting periods






4. Postponement of recognition of an expense already paid.






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






6. 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.






7. Selling goods and services to customers - employing managers and workers.






8. The ability to have enough cash to pay debts when they are due.






9. Decreases






10. It's usual balance and is the side (debit or credit) that increases the amount.






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






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


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






14. The predetermined time at which a transaction should be recorded.






15. A temporary account that summarizes all revenues and expenses for the period.






16. As an expense and the corresponding liability accumulate.






17. Deferral of an expense! (Except land)






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






19. The amount allocated to any one accounting period.






20. People that estimate various things






21. Balance sheet accounts - such as cash and accounts payable because they carry their end-of-period balances into the next accounting period






22. Accounting Equation






23. Revenues - Expenses






24. Decreases






25. Payments of rent - insurance - supplies - and the depreciation of plant and equipment






26. Made at the end of accounting period..-They clear revenue - expense accounts - and dividends account of their balances. -Summarize a period's revenue and expenses by transferring the balances of them to the income summary account






27. Accounting periods of less than a year.






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






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






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






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






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






33. 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)






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






35. Match expenses with the revenues that they help generate - & vice versa.






36. Accounting for revenues in the period in which cash is received and for expenses in the period where cash is paid. More closely related to the goal of liquidity.






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






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






39. Lists all accounts and their balances






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






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






42. Contains only balance sheet accounts.






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






44. A separate account that is paired with a related account






45. Cash account






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






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






48. Contributed Capital + Retained Earnings


49. Increases






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