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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. Determines corporate policy - declares dividends and appoints management.






2. Increases






3. Decreases






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






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






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






7. Postponement of recognition of an expense already paid.






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






9. People that estimate various things






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






11. 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






12. 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.






13. Accounting periods of less than a year.






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

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15. Lists all accounts and their balances






16. 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)






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






18. Revenues - Expenses






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






20. International Accounting Standards Board.






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






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






23. Sole worker of your business






24. Contributed Capital + Retained Earnings

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






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






27. Contains only balance sheet accounts.






28. Deferral of an expense! (Except land)






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






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






31. Their related asset accounts on the balance sheet






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






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






34. A separate account that is paired with a related account






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






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






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






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






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






40. The amount allocated to any one accounting period.






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






42. Working totals






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






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






45. As an expense and the corresponding liability accumulate.






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






47. Choosing the number of accounting periods






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






49. 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






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

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