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






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






3. Deferral of an expense! (Except land)






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

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

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6. Increases






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






8. 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






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






10. As an expense and the corresponding liability accumulate.






11. 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.






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






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






14. The amount allocated to any one accounting period.






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






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






17. Accounting Equation






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






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






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






21. 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






22. Decreases






23. Contains only balance sheet accounts.






24. A net loss occurs






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






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






27. Sole worker of your business






28. Working totals






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






30. 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






31. Choosing the number of accounting periods






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






33. Cash account






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






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






36. Decreases






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






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






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






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






41. International Accounting Standards Board.






42. Accounting periods of less than a year.






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






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






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






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






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






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






49. Contributed Capital + Retained Earnings

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







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Can you answer 50 questions in 15 minutes?


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