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






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






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






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






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






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






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






8. A net loss occurs






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






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






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






12. Increases






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






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






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






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


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






18. Contains only balance sheet accounts.






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






20. 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






21. The amount allocated to any one accounting period.






22. People that estimate various things






23. 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)






24. Accounting Equation






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






26. Lists all accounts and their balances






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






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






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






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






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






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






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






34. Decreases






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






36. Accounting periods of less than a year.






37. 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.






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






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






40. Deferral of an expense! (Except land)






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






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






43. Working totals






44. Cash account






45. Decreases






46. Postponement of recognition of an expense already paid.






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






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






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


50. International Accounting Standards Board.