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






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






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






4. A net loss occurs






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






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






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






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






9. Working totals






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






11. Lists all accounts and their balances






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






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






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






15. 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






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






17. 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.






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






19. Their related asset accounts on the balance sheet






20. 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.






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. Revenues - Expenses






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






24. People that estimate various things






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






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






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






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






29. Postponement of recognition of an expense already paid.






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






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






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






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






34. Decreases






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


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






37. As an expense and the corresponding liability accumulate.






38. 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






39. Increases






40. Contributed Capital + Retained Earnings


41. Deferral of an expense! (Except land)






42. Decreases






43. Choosing the number of accounting periods






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






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






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






47. 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)






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






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


50. International Accounting Standards Board.