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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. A net loss occurs






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






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






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






5. As an expense and the corresponding liability accumulate.






6. Postponement of recognition of an expense already paid.






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






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






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






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






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






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






13. Working totals






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






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

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16. 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.






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






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






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






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






21. 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






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






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






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






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






26. People that estimate various things






27. Increases






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






29. Accounting periods of less than a year.






30. Choosing the number of accounting periods






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






32. 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






33. Cash account






34. Decreases






35. Sole worker of your business






36. International Accounting Standards Board.






37. Accounting Equation






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






39. Contributed Capital + Retained Earnings

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

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






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






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






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






45. Decreases






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






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






48. Lists all accounts and their balances






49. 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.






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