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Test your basic knowledge |
CLEP Financial Accounting
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Subjects
:
clep
,
business-skills
Instructions:
Answer 50 questions in 15 minutes.
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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. Payments received in advance - and deposits made on goods and services
Steps for Income Summary Account
Balance Sheet
Allocating recorded - unearned revenues between 2 or more accounting periods (ARUR)
Fiscal Year
2. Contains only balance sheet accounts.
Valuation
Periodicity
Liquidity
Final Trial Balance
3. Used to accumulate the depreciation on each long-term asset
Recognition
Adjusting entries NEVER affect..
Securities Exchange Commission (SEC)
Accumulated Depreciation Accounts
4. The manipulation of revenues and expenses to achieve a specific outcome.
Earnings Management
Steps for Income Summary Account
Depreciation
Adjusting entries NEVER affect..
5. Postponement of recognition of an expense already paid.
Contra Account
Income Summary Account
Deferral
Income Statement
6. Contributed Capital + Retained Earnings
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7. Common Stock + Retained Earnings - Dividends + Revenues - Expenses
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8. Forces a monetary value to a business transaction and accounting for the assets and liabilities that result from the transaction.
Consignment Sale
Accumulated Depreciation Accounts
Adjusted Trial Balance
Valuation
9. Revenues - Expenses
Recognition Point
Net Income =
Allocating recorded - unearned revenues between 2 or more accounting periods (ARUR)
IASB
10. Decreases
Final Trial Balance
Accounting Equation
Expenses are what to SE..
Dividends are what to SE
11. 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)
Recognition Point
Adjusted Trial Balance
Consignment Sale
Securities Exchange Commission (SEC)
12. Deferral of an expense! (Except land)
Allocating recorded - unearned revenues between 2 or more accounting periods (ARUR)
Sole proprietorship
Permanent Accounts (Real Accounts)
Long term assets are..
13. 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.
Accrual Accounting
Events that are recorded as transactions
Normal Balance
Cash Basis of Accounting
14. Focuses on assigning a monetary value to a business transaction and accounting for assets and liabilities.
Income Summary Account
Events that are recorded as transactions
Valuation Issue
Accounting Equation
15. As an expense and the corresponding liability accumulate.
Post-closing trial balance
Valuation
Sole proprietorship
Accrued Expenses
16. If you're having a bad year - to dump everything into something else like pensions
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17. The net amount - or 'Book Value' of an asset
Adjusting entries affect...
Accrual Accounting
Balance Sheet
Carrying Value
18. A net loss occurs
Recognizing Unrecorded Expenses (RUE)
Accumulated Depreciation Accounts
Accrued revenues
When expenses exceed revenues..
19. Determines that all temporary accounts have zero balances and to double check that total debits = total credits
Dividends are what to SE
Post-closing trial balance
Continuity
Income Summary Account
20. customer inquires about availability of service -company hires new employee -company signs contract to provide service in future
Periodicity
Not recorded as transactions
Stockholder's Equity
Footings
21. Society recognizes you as a partner of your partnership - so if you or they do something stupid - you are bound to that deal.
Final Trial Balance
Mutual Agency
Accrual Accounting
Steps for Income Summary Account
22. People that estimate various things
Cash Basis of Accounting
Actuaries
Accumulated Depreciation Accounts
Board of Directors
23. The amount allocated to any one accounting period.
Final Trial Balance
Depreciation
Closing Entries
Statement of Retained Earnings:
24. Balance sheet accounts - such as cash and accounts payable because they carry their end-of-period balances into the next accounting period
IASB
Permanent Accounts (Real Accounts)
Dividends are what to SE
Cost Principle
25. The practice of recording transactions at exchange price at the point of recognition.
Cost Principle
Accrual Accounting
Recognition
Cash Basis of Accounting
26. Choosing the number of accounting periods
Going Concern
Recognition
Expenses are what to SE..
Continuity
27. The difficulty of deciding when a business transaction should be recorded
We Recognize A Transaction
Revenues are what to SE..
Recognition
'Big Bath Theory'
28. Payments of rent - insurance - supplies - and the depreciation of plant and equipment
Allocating recorded costs between 2 or more accounting periods (ARC)
Accumulated Depreciation Accounts
Expenses are what to SE..
Consignment Sale
29. The predetermined time at which a transaction should be recorded.
FASB
Adjusting entries affect...
Balance Sheet
Recognition Point
30. Net income on the income statement - and profitability comparisons from one accounting period to the next.
Expenses are what to SE..
Steps for Income Summary Account
Adjusting entries affect...
Allocating recorded costs between 2 or more accounting periods (ARC)
31. Shows the changes in RE over an accounting period.
Permanent Accounts (Real Accounts)
Stockholder's Equity
Valuation Issue
Statement of Retained Earnings:
32. A 12 month accounting period (Vary depending on slack seasons)
Accrued Expenses
Fiscal Year
When expenses exceed revenues..
Operating Activities
33. Wages - Interest - and Income taxes that have been incurred but have not been recorded during an accounting period.
Interim Periods
GASB
Continuity Assumption
Recognizing Unrecorded Expenses (RUE)
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
Valuation
Income Statement
Expenses are what to SE..
Closing Entries
35. International Accounting Standards Board.
IASB
Recognition
Income Statement
Post-closing trial balance
36. Sole worker of your business
Accumulated Depreciation Accounts
Recognition Point
Sole proprietorship
Continuity
37. The estimation of business's net income in terms of accounting periods.
Contra Account
Post-closing trial balance
Accounting Equation
Periodicity
38. Generally Accepted Accounting Principles - or guidelines for financial accounting.
Continuity Assumption
FASB
Fiscal Year
GAAP
39. Match expenses with the revenues that they help generate - & vice versa.
Periodicity
Matching Rule
Fiscal Year
Valuation
40. Government Accounting Standards Board - similar to FASB - issues accounting standards for state and local governments.
We Recognize A Transaction
GASB
Steps for Income Summary Account
Cash Basis of Accounting
41. Accounting periods of less than a year.
Interim Periods
Accounting Equation
Long term assets are..
Adjusted Trial Balance
42. Working totals
Contra Account
Balance Sheet
Revenues are what to SE..
Footings
43. Determines corporate policy - declares dividends and appoints management.
'Big Bath Theory'
Corporations
Board of Directors
GASB
44. Revenues that a company has earned but for which no entry has been made in the accounting records
Board of Directors
Revenues are what to SE..
Accrued revenues
Accumulated Depreciation Accounts
45. A separate account that is paired with a related account
Cash Basis of Accounting
Contra Account
'Big Bath Theory'
Accrual Accounting
46. Financial Accounting Standards Board - Designed by SEC to develop rules on accounting practice.
FASB
Permanent Accounts (Real Accounts)
When expenses exceed revenues..
Adjusting entries NEVER affect..
47. A body of people set up by Congress who protect the public by regulating the issuing - buying - and selling of stocks in the US.
Cost Principle
GAAP
Periodicity
Securities Exchange Commission (SEC)
48. 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.
Going Concern
Footings
Recognizing unrecorded - earned revenues
Matching Rule
49. Close the revenues account - Close the expense account - Close the income summary account - Close the dividends account
When expenses exceed revenues..
Steps for Income Summary Account
Depreciation
Sole proprietorship
50. Their related asset accounts on the balance sheet
Steps for Income Summary Account
Stockholder's Equity
Post-closing trial balance
Accumulated Depreciation accounts are deducted from..
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