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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. International Accounting Standards Board.






2. 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






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

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4. Postponement of recognition of an expense already paid.






5. 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






6. Their related asset accounts on the balance sheet






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






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






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






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






11. Contributed Capital + Retained Earnings

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






13. The amount allocated to any one accounting period.






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






15. Revenues - Expenses






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






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






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






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






20. Deferral of an expense! (Except land)






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






22. 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.






23. Choosing the number of accounting periods






24. Accounting Equation






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






26. 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.






27. Sole worker of your business






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






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






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






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






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






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






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






35. People that estimate various things






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






37. 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






38. As an expense and the corresponding liability accumulate.






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






40. Accounting periods of less than a year.






41. Working totals






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






43. Lists all accounts and their balances






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






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






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






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

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






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






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






Can you answer 50 questions in 15 minutes?



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