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






2. Sole worker of your business






3. Deferral of an expense! (Except land)






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

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






6. Increases






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






8. International Accounting Standards Board.






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






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






11. 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






12. 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)






13. Contains only balance sheet accounts.






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






15. 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






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






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






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






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






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






21. Accounting periods of less than a year.






22. 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.






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






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






25. Accounting Equation






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






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






28. Postponement of recognition of an expense already paid.






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






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






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






32. The amount allocated to any one accounting period.






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






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






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

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






37. Decreases






38. Working totals






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






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






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






42. Contributed Capital + Retained Earnings

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






44. People that estimate various things






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






46. Cash account






47. Revenues - Expenses






48. Choosing the number of accounting periods






49. Decreases






50. Lists all accounts and their balances







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Can you answer 50 questions in 15 minutes?


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