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






2. As an expense and the corresponding liability accumulate.






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






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






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






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






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






8. Postponement of recognition of an expense already paid.






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






10. Deferral of an expense! (Except land)






11. Decreases






12. Contributed Capital + Retained Earnings

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13. Their related asset accounts on the balance sheet






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






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






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






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






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






19. Choosing the number of accounting periods






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






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






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






25. International Accounting Standards Board.






26. Sole worker of your business






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






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






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






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






31. People that estimate various things






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






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






34. 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)






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






36. Lists all accounts and their balances






37. 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






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






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






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

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41. Cash account






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






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






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






45. Working totals






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






47. Decreases






48. Accounting Equation






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






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

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