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






2. Contains only balance sheet accounts.






3. 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






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






5. Working totals






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






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

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8. Revenues - Expenses






9. Accounting Equation






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






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






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






13. The amount allocated to any one accounting period.






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






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






16. 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






17. Choosing the number of accounting periods






18. 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.






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






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






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






22. Cash account






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






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






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






26. 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






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






28. International Accounting Standards Board.






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






30. Contributed Capital + Retained Earnings

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






32. Lists all accounts and their balances






33. 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)






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






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

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






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






38. Increases






39. Postponement of recognition of an expense already paid.






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






41. Decreases






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






43. Decreases






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






45. 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.






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






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






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






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






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







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Can you answer 50 questions in 15 minutes?


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