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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. Increases






2. Working totals






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






4. 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






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






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






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






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






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






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






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






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






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






14. A net loss occurs






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

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






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






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






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






21. Contains only balance sheet accounts.






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

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23. Decreases






24. Accounting Equation






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






26. Postponement of recognition of an expense already paid.






27. Cash account






28. People that estimate various things






29. 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.






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






31. Deferral of an expense! (Except land)






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






33. Revenues - Expenses






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






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






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






37. International Accounting Standards Board.






38. Sole worker of your business






39. 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)






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






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






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






43. Accounting periods of less than a year.






44. Decreases






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






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






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






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






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






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







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Can you answer 50 questions in 15 minutes?


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