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


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


3. Postponement of recognition of an expense already paid.






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






5. Accounting Equation






6. Decreases






7. People that estimate various things






8. The amount allocated to any one accounting period.






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






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






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






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






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






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






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






16. 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.






17. Sole worker of your business






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






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






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






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






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






23. Accounting periods of less than a year.






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






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






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






28. International Accounting Standards Board.






29. Working totals






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






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






32. Lists all accounts and their balances






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






34. 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






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






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






37. A net loss occurs






38. Decreases






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






40. Revenues - Expenses






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






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






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






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






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






46. Contains only balance sheet accounts.






47. Cash account






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






49. Their related asset accounts on the balance sheet






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