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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. 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






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






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






4. Increases






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






6. 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






7. Their related asset accounts on the balance sheet






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






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






10. Accounting Equation






11. Cash account






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






13. Accounting periods of less than a year.






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






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






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






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






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






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






20. 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






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






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






23. A net loss occurs






24. International Accounting Standards Board.






25. Working totals






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






27. Choosing the number of accounting periods






28. As an expense and the corresponding liability accumulate.






29. 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)






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






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






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






33. Decreases






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






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






36. Revenues - Expenses






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






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






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






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






41. 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.






42. Sole worker of your business






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






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






45. Deferral of an expense! (Except land)






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


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






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


49. Lists all accounts and their balances






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