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






2. Accounting periods of less than a year.






3. 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.






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






5. Contains only balance sheet accounts.






6. Lists all accounts and their balances






7. Their related asset accounts on the balance sheet






8. Working totals






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






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






11. People that estimate various things






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






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






14. Contributed Capital + Retained Earnings


15. 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.






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






17. Postponement of recognition of an expense already paid.






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






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


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






21. Increases






22. As an expense and the corresponding liability accumulate.






23. International Accounting Standards Board.






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






25. 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






26. 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






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






28. Decreases






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






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






31. Decreases






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






33. Sole worker of your business






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






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






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






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






38. 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






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






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






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






42. Accounting Equation






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






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






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






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






47. Cash account






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






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






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