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






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

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3. Cash account






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






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






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






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






8. Accounting periods of less than a year.






9. Lists all accounts and their balances






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






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






12. Accounting Equation






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






14. 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.






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






16. Sole worker of your business






17. Postponement of recognition of an expense already paid.






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






19. Decreases






20. A net loss occurs






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






22. Their related asset accounts on the balance sheet






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






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






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






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






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






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






29. Contains only balance sheet accounts.






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






31. 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)






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






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






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






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






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






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






38. 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.






39. People that estimate various things






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






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






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

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






44. Contributed Capital + Retained Earnings

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45. The amount allocated to any one accounting period.






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






47. Deferral of an expense! (Except land)






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






49. As an expense and the corresponding liability accumulate.






50. International Accounting Standards Board.