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






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






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






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






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






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






7. Working totals






8. 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






9. Decreases






10. A net loss occurs






11. The amount allocated to any one accounting period.






12. Their related asset accounts on the balance sheet






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

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14. Accounting periods of less than a year.






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






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






17. People that estimate various things






18. Revenues - Expenses






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






20. Contains only balance sheet accounts.






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

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22. Contributed Capital + Retained Earnings

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






24. Decreases






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






26. 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.






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






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






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






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






31. 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






32. Postponement of recognition of an expense already paid.






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






34. 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.






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






36. 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






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






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






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






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






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






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






43. Increases






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






45. As an expense and the corresponding liability accumulate.






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






47. Choosing the number of accounting periods






48. Deferral of an expense! (Except land)






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






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






Can you answer 50 questions in 15 minutes?



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