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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. A separate account that is paired with a related account






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






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






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






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






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






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






8. Postponement of recognition of an expense already paid.






9. As an expense and the corresponding liability accumulate.






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






11. International Accounting Standards Board.






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






13. Choosing the number of accounting periods






14. Sole worker of your business






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






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






17. Contains only balance sheet accounts.






18. The amount allocated to any one accounting period.






19. Cash account






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






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






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






23. Revenues - Expenses






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






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






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






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






28. Increases






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






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






31. Accounting periods of less than a year.






32. 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.






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






34. Their related asset accounts on the balance sheet






35. Decreases






36. 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)






37. A net loss occurs






38. 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.






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






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






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






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






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






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






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






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






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






48. Deferral of an expense! (Except land)






49. Working totals






50. Contributed Capital + Retained Earnings

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