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






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






3. International Accounting Standards Board.






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






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






6. Contributed Capital + Retained Earnings

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7. Postponement of recognition of an expense already paid.






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






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






10. Cash account






11. Their related asset accounts on the balance sheet






12. Accounting Equation






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






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






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






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






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






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






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






20. As an expense and the corresponding liability accumulate.






21. Choosing the number of accounting periods






22. 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






23. The amount allocated to any one accounting period.






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






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






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






27. Increases






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






29. Decreases






30. Working totals






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






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






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






34. Lists all accounts and their balances






35. People that estimate various things






36. 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.






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






38. Revenues - Expenses






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






40. 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






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






42. 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






43. Contains only balance sheet accounts.






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






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

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46. Deferral of an expense! (Except land)






47. Sole worker of your business






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

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






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