Test your basic knowledge |

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






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






3. The amount allocated to any one accounting period.






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






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






6. Working totals






7. Sole worker of your business






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






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






10. Decreases






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

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






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






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






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






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

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






18. Contributed Capital + Retained Earnings

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






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






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






22. Lists all accounts and their balances






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






24. As an expense and the corresponding liability accumulate.






25. Cash account






26. 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.






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






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






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






30. 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)






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






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






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






34. Accounting periods of less than a year.






35. People that estimate various things






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






37. Their related asset accounts on the balance sheet






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






39. Deferral of an expense! (Except land)






40. 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






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






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






43. Increases






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






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






46. Revenues - Expenses






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






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






49. Postponement of recognition of an expense already paid.






50. A net loss occurs