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






2. Contributed Capital + Retained Earnings

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3. 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.






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






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






6. 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






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






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






9. Increases






10. Accounting Equation






11. Lists all accounts and their balances






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






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






14. Their related asset accounts on the balance sheet






15. As an expense and the corresponding liability accumulate.






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






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

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18. Choosing the number of accounting periods






19. Working totals






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






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






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






23. Deferral of an expense! (Except land)






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






25. 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






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






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

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28. International Accounting Standards Board.






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






30. People that estimate various things






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






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






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






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






35. 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






36. Contains only balance sheet accounts.






37. 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)






38. Decreases






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






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






41. Decreases






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






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






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






45. Postponement of recognition of an expense already paid.






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






47. Sole worker of your business






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






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






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







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Can you answer 50 questions in 15 minutes?


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