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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. Revenues - Expenses






3. Accounting Equation






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






5. Lists all accounts and their balances






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






7. 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






8. 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)






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






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






11. Postponement of recognition of an expense already paid.






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






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






14. Accounting periods of less than a year.






15. Working totals






16. Increases






17. A net loss occurs






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






19. People that estimate various things






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






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






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






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






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






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






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






27. Sole worker of your business






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






29. Cash account






30. Choosing the number of accounting periods






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






32. Decreases






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






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






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






36. 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






37. Deferral of an expense! (Except land)






38. International Accounting Standards Board.






39. Contains only balance sheet accounts.






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






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






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






43. 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






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






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






46. 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.






47. Contributed Capital + Retained Earnings

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






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






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