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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. Decreases






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






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






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






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






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






7. 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)






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






9. Working totals






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






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

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






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






14. Postponement of recognition of an expense already paid.






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. A net loss occurs






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






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






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






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






21. 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.






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

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






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






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






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






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






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






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






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






31. The amount allocated to any one accounting period.






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






33. 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






34. Sole worker of your business






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






36. Accounting periods of less than a year.






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






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






39. Cash account






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






41. Accounting Equation






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






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






44. Deferral of an expense! (Except land)






45. 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






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






47. Contains only balance sheet accounts.






48. Increases






49. Decreases






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







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Can you answer 50 questions in 15 minutes?


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