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






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






3. Decreases






4. 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.






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

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6. Shows the changes in RE over an accounting period.






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






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






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






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

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






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






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






14. Contains only balance sheet accounts.






15. Accounting periods of less than a year.






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






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






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






19. International Accounting Standards Board.






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






21. Society recognizes you as a partner of your partnership - so if you or they do something stupid - you are bound to that deal.






22. Their related asset accounts on the balance sheet






23. People that estimate various things






24. A net loss occurs






25. Accounting Equation






26. Decreases






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






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






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






30. As an expense and the corresponding liability accumulate.






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






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






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






34. 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.






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






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






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






38. Sole worker of your business






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






40. The amount allocated to any one accounting period.






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






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






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






44. Postponement of recognition of an expense already paid.






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






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






47. Increases






48. Deferral of an expense! (Except land)






49. The net amount - or 'Book Value' of an asset






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






Can you answer 50 questions in 15 minutes?



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