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






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






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






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

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






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






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






8. Decreases






9. 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)






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






11. Revenues - Expenses






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






13. As an expense and the corresponding liability accumulate.






14. Cash account






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






16. Choosing the number of accounting periods






17. Increases






18. People that estimate various things






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






20. 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






21. Their related asset accounts on the balance sheet






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






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






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






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






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

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






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






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






30. Postponement of recognition of an expense already paid.






31. Decreases






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






33. Sole worker of your business






34. The amount allocated to any one accounting period.






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






36. 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.






37. A net loss occurs






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






39. Lists all accounts and their balances






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






41. Contains only balance sheet accounts.






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






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






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






45. Working totals






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






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






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






49. 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.






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







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Can you answer 50 questions in 15 minutes?


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