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






2. Cash account






3. International Accounting Standards Board.






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

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






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






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






8. Postponement of recognition of an expense already paid.






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






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






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






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






13. Their related asset accounts on the balance sheet






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






15. Accounting Equation






16. Increases






17. 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.






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






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






20. Choosing the number of accounting periods






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






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






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






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






25. Accounting periods of less than a year.






26. 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






27. Revenues - Expenses






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






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






30. Decreases






31. Contributed Capital + Retained Earnings

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






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






34. Decreases






35. Lists all accounts and their balances






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






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






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






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






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






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






42. 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






43. Sole worker of your business






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






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






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

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47. Contains only balance sheet accounts.






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






49. As an expense and the corresponding liability accumulate.






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






Can you answer 50 questions in 15 minutes?



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