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






2. Contains only balance sheet accounts.






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






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






5. Postponement of recognition of an expense already paid.






6. Contributed Capital + Retained Earnings

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

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






9. Revenues - Expenses






10. Decreases






11. 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)






12. Deferral of an expense! (Except land)






13. 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.






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






15. As an expense and the corresponding liability accumulate.






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

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






18. A net loss occurs






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






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






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






22. People that estimate various things






23. The amount allocated to any one accounting period.






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






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






26. Choosing the number of accounting periods






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






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






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






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






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






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






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






34. 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






35. International Accounting Standards Board.






36. Sole worker of your business






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






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






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






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






41. Accounting periods of less than a year.






42. Working totals






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






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






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






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






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






48. 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.






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






50. Their related asset accounts on the balance sheet







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Can you answer 50 questions in 15 minutes?


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