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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. Sole worker of your business






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






3. Contributed Capital + Retained Earnings

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4. 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.






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






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






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






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






9. Increases






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






11. Decreases






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






13. Their related asset accounts on the balance sheet






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






15. Contains only balance sheet accounts.






16. Accounting periods of less than a year.






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






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






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






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

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






22. 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






23. Revenues - Expenses






24. Deferral of an expense! (Except land)






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






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






27. Decreases






28. 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.






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






30. 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






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






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






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






34. Choosing the number of accounting periods






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






36. 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






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






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

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






40. People that estimate various things






41. International Accounting Standards Board.






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






43. Selling goods and services to customers - employing managers and workers.






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






45. Postponement of recognition of an expense already paid.






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






47. Cash account






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






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






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







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Can you answer 50 questions in 15 minutes?


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