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






3. Postponement of recognition of an expense already paid.






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






5. 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.






6. International Accounting Standards Board.






7. Their related asset accounts on the balance sheet






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






9. 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.






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






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






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






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






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






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






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






17. 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






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






19. Working totals






20. Cash account






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






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






23. Deferral of an expense! (Except land)






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






25. Decreases






26. Contributed Capital + Retained Earnings

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






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






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






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






31. Accounting Equation






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






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






34. People that estimate various things






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






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






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






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






39. 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






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






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






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






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






44. Lists all accounts and their balances






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






46. 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)






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






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






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

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







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Can you answer 50 questions in 15 minutes?


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