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

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


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






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






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






5. As an expense and the corresponding liability accumulate.






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






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






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

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


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






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






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






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






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






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






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






16. International Accounting Standards Board.






17. A net loss occurs






18. Increases






19. 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)






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






21. Revenues - Expenses






22. Their related asset accounts on the balance sheet






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






24. 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.






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






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






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






28. 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






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






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






31. Postponement of recognition of an expense already paid.






32. 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.






33. Cash account






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






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






36. Working totals






37. The amount allocated to any one accounting period.






38. Accounting periods of less than a year.






39. Decreases






40. Choosing the number of accounting periods






41. People that estimate various things






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






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






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






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






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






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






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






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