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






2. Cash account






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






4. Choosing the number of accounting periods






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






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






7. Deferral of an expense! (Except land)






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






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






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






11. 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.






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






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

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14. Working totals






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






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






17. Postponement of recognition of an expense already paid.






18. Decreases






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






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






21. 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






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






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






24. Decreases






25. People that estimate various things






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






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






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






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






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






31. Accounting periods of less than a year.






32. Contributed Capital + Retained Earnings

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






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






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






36. Their related asset accounts on the balance sheet






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






38. International Accounting Standards Board.






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






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






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






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






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






44. Lists all accounts and their balances






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

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






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






48. 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






49. Increases






50. As an expense and the corresponding liability accumulate.