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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. As an expense and the corresponding liability accumulate.






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






3. The amount allocated to any one accounting period.






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






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






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






7. 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






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






9. Sole worker of your business






10. Forces a monetary value to a business transaction and accounting for the assets and liabilities that result from the transaction.






11. Postponement of recognition of an expense already paid.






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






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






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






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






16. Choosing the number of accounting periods






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






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






19. Contributed Capital + Retained Earnings

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20. A net loss occurs






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. Determines corporate policy - declares dividends and appoints management.






23. Accounting periods of less than a year.






24. 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.






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






26. Cash account






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






28. 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)






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






30. Decreases






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






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






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






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






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

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






37. Lists all accounts and their balances






38. Deferral of an expense! (Except land)






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






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






41. People that estimate various things






42. International Accounting Standards Board.






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






44. 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.






45. Revenues - Expenses






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






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

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






49. Their related asset accounts on the balance sheet






50. Contains only balance sheet accounts.