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. Determines corporate policy - declares dividends and appoints management.






2. Accounting periods of less than a year.






3. As an expense and the corresponding liability accumulate.






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






5. 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.






6. 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






7. Choosing the number of accounting periods






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






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






10. 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)






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






12. A net loss occurs






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






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






15. The amount allocated to any one accounting period.






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






17. 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






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






19. 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.






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






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






22. Working totals






23. Accounting Equation






24. International Accounting Standards Board.






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






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






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






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






29. Contributed Capital + Retained Earnings

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






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






32. Increases






33. 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






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






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






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






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






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






39. People that estimate various things






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






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






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






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






44. Lists all accounts and their balances






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






46. Decreases






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






48. Deferral of an expense! (Except land)






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






50. Their related asset accounts on the balance sheet