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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. International Accounting Standards Board.






2. A net loss occurs






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






4. 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






5. 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






6. Deferral of an expense! (Except land)






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






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






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






10. 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.






11. Their related asset accounts on the balance sheet






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






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






14. Accounting Equation






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






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






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






18. The amount allocated to any one accounting period.






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






20. 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






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






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






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






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

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25. 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)






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






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






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

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






30. Working totals






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






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






33. People that estimate various things






34. Revenues - Expenses






35. Choosing the number of accounting periods






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






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






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






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






40. Decreases






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






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






43. Cash account






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






45. Lists all accounts and their balances






46. Decreases






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






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






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






50. Increases







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Can you answer 50 questions in 15 minutes?


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