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






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






3. Sole worker of your business






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

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






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






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






8. International Accounting Standards Board.






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






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






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

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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. 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






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






15. Postponement of recognition of an expense already paid.






16. Choosing the number of accounting periods






17. Accounting periods of less than a year.






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






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






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






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






22. Contains only balance sheet accounts.






23. Decreases






24. Revenues - Expenses






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






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






27. A net loss occurs






28. As an expense and the corresponding liability accumulate.






29. Deferral of an expense! (Except land)






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






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






32. Lists all accounts and their balances






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






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






35. Decreases






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






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






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






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






40. Accounting Equation






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






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






43. Their related asset accounts on the balance sheet






44. 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






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






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






47. 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.






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






49. 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)






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