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






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






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

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






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






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






7. 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.






8. 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)






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






10. Revenues - Expenses






11. Cash account






12. The amount allocated to any one accounting period.






13. Increases






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






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






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






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






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






19. Sole worker of your business






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






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






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






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

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






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






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






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






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






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






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






31. 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






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






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






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






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






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






37. Postponement of recognition of an expense already paid.






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






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






40. Deferral of an expense! (Except land)






41. Lists all accounts and their balances






42. Their related asset accounts on the balance sheet






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






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






45. International Accounting Standards Board.






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






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






48. A net loss occurs






49. Accounting periods of less than a year.






50. Working totals