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






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






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






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






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






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






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






8. The amount allocated to any one accounting period.






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






10. Choosing the number of accounting periods






11. Accounting Equation






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






13. Cash account






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






15. Their related asset accounts on the balance sheet






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






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






18. Contains only balance sheet accounts.






19. International Accounting Standards Board.






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






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






22. Lists all accounts and their balances






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






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






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






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






27. Contributed Capital + Retained Earnings


28. Revenues - Expenses






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


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






31. 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.






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






33. Working totals






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






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






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






37. Deferral of an expense! (Except land)






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






39. 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.






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






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






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






43. A net loss occurs






44. Sole worker of your business






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






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






47. Accounting periods of less than a year.






48. Postponement of recognition of an expense already paid.






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






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