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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. The amount allocated to any one accounting period.






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






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






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






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






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






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






8. Deferral of an expense! (Except land)






9. Sole worker of your business






10. Decreases






11. Revenues - Expenses






12. Their related asset accounts on the balance sheet






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






14. Lists all accounts and their balances






15. A net loss occurs






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






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






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






19. 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)






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






21. People that estimate various things






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






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






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






25. Choosing the number of accounting periods






26. As an expense and the corresponding liability accumulate.






27. Cash account






28. Increases






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






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






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






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






33. 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.






34. Decreases






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






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






37. International Accounting Standards Board.






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






39. Accounting periods of less than a year.






40. Contains only balance sheet accounts.






41. 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






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






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






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






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






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






47. Working totals






48. 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






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






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