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






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






4. Revenues - Expenses






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






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






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






8. 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






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






10. Postponement of recognition of an expense already paid.






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






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






13. Deferral of an expense! (Except land)






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






15. Lists all accounts and their balances






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






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






18. Contains only balance sheet accounts.






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






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






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






22. As an expense and the corresponding liability accumulate.






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






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






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






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






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






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






30. Working totals






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






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






33. Increases






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






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






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






37. Accounting periods of less than a year.






38. Choosing the number of accounting periods






39. Their related asset accounts on the balance sheet






40. Sole worker of your business






41. The amount allocated to any one accounting period.






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






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






44. Decreases






45. Accounting Equation






46. Cash account






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






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






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






50. 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.