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






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

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3. Increases






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






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






6. As an expense and the corresponding liability accumulate.






7. People that estimate various things






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






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






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






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






12. Decreases






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






14. Choosing the number of accounting periods






15. Accounting Equation






16. 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.






17. Accounting periods of less than a year.






18. Lists all accounts and their balances






19. Working totals






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






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






22. Contains only balance sheet accounts.






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






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






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






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






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






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






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






30. A net loss occurs






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






32. Their related asset accounts on the balance sheet






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






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






35. The amount allocated to any one accounting period.






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






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






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






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






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






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






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






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






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






45. Revenues - Expenses






46. Sole worker of your business






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






48. 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






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






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.







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Can you answer 50 questions in 15 minutes?


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