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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. A separate account that is paired with a related account






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






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






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






6. Increases






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






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






9. Decreases






10. 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






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






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


13. Contributed Capital + Retained Earnings


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






15. Revenues - Expenses






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






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






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






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






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






21. Their related asset accounts on the balance sheet






22. International Accounting Standards Board.






23. Decreases






24. As an expense and the corresponding liability accumulate.






25. Contains only balance sheet accounts.






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






27. Working totals






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






29. 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






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






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






32. 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






33. Choosing the number of accounting periods






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






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






36. Sole worker of your business






37. Accounting Equation






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






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






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






41. Accounting periods of less than a year.






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






43. The amount allocated to any one accounting period.






44. Government Accounting Standards Board - similar to FASB - issues accounting standards for state and local governments.






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






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






47. Cash account






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






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






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