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






2. Deferral of an expense! (Except land)






3. People that estimate various things






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






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






6. Decreases






7. Accounting Equation






8. International Accounting Standards Board.






9. 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






10. Their related asset accounts on the balance sheet






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






12. Revenues - Expenses






13. 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






14. Lists all accounts and their balances






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






16. Working totals






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






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






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






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






21. Choosing the number of accounting periods






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






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






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






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

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






27. As an expense and the corresponding liability accumulate.






28. Contributed Capital + Retained Earnings

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29. 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)






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






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






32. Sole worker of your business






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






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






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






36. Decreases






37. 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






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






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






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






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






42. 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.






43. Contains only balance sheet accounts.






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






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






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






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

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






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






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







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Can you answer 50 questions in 15 minutes?


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