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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 buys a service - company pays an employee for service - company performs service






2. Working totals






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






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






5. 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.






6. Accounting Equation






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






8. 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






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






10. Decreases






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






12. A net loss occurs






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






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






15. 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






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






17. Postponement of recognition of an expense already paid.






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






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






20. 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.






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






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






23. Contributed Capital + Retained Earnings

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24. Their related asset accounts on the balance sheet






25. Deferral of an expense! (Except land)






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






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






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






29. The practice of recording transactions at exchange price at the point of recognition.






30. Choosing the number of accounting periods






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






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






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

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






35. Lists all accounts and their balances






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






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






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






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






40. International Accounting Standards Board.






41. Revenues - Expenses






42. The amount allocated to any one accounting period.






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






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

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






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. 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)






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






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






50. Sole worker of your business