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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. The amount allocated to any one accounting period.






2. As an expense and the corresponding liability accumulate.






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






4. Cash account






5. Lists all accounts and their balances






6. Their related asset accounts on the balance sheet






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






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






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

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






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






12. Contributed Capital + Retained Earnings

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13. International Accounting Standards Board.






14. Contains only balance sheet accounts.






15. 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






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






17. 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






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






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






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






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






22. Revenues - Expenses






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






24. People that estimate various things






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






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






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






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






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






30. Accounting periods of less than a year.






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






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






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






34. Choosing the number of accounting periods






35. Deferral of an expense! (Except land)






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






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






38. Increases






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






40. Working totals






41. Decreases






42. 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






43. A net loss occurs






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






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






46. 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.






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






48. Decreases






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






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