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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. Choosing the number of accounting periods






2. Decreases






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






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






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






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






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






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






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






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






11. 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






12. Lists all accounts and their balances






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






14. The amount allocated to any one accounting period.






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






16. People that estimate various things






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






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






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






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






21. As an expense and the corresponding liability accumulate.






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






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






24. 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.






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






26. Sole worker of your business






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






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






29. Contains only balance sheet accounts.






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






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






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






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






34. Accounting Equation






35. Increases






36. Revenues - Expenses






37. Accounting periods of less than a year.






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






39. Their related asset accounts on the balance sheet






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






41. Working totals






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






43. International Accounting Standards Board.






44. Decreases






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






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






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






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






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






50. 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.