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






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






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






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






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






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

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7. Decreases






8. Accounting periods of less than a year.






9. A net loss occurs






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






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






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






13. The amount allocated to any one accounting period.






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






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






16. Revenues - Expenses






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






18. People that estimate various things






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






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






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






22. Cash account






23. 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






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






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






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






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






28. Decreases






29. Working totals






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






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






32. Lists all accounts and their balances






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






34. 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)






35. International Accounting Standards Board.






36. Contains only balance sheet accounts.






37. As an expense and the corresponding liability accumulate.






38. Accounting Equation






39. Postponement of recognition of an expense already paid.






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






41. Choosing the number of accounting periods






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. 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.






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

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45. Increases






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






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






48. Their related asset accounts on the balance sheet






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






50. Contributed Capital + Retained Earnings

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