SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
CLEP Financial Accounting
Start Test
Study First
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 manipulation of revenues and expenses to achieve a specific outcome.
Earnings Management
Final Trial Balance
Fiscal Year
Adjusting entries affect...
2. Generally Accepted Accounting Principles - or guidelines for financial accounting.
'Big Bath Theory'
Stockholder's Equity =
GAAP
Accrued Expenses
3. Contributed Capital + Retained Earnings
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
4. Used to accumulate the depreciation on each long-term asset
Accumulated Depreciation Accounts
Mutual Agency
Not recorded as transactions
IASB
5. Customer buys a service - company pays an employee for service - company performs service
Fiscal Year
Income Summary Account
Events that are recorded as transactions
Recognition
6. Persuasive evidence of arrangement - Seller's price is fixed or determinable - Product or service has been delivered - Collectibility is reasonably assured
Cash Basis of Accounting
Accounting Equation
Adjusting entries NEVER affect..
SEC Requirements for transactions
7. Cash account
Mutual Agency
Corporations
Adjusting entries NEVER affect..
Accumulated Depreciation Accounts
8. Increases
Securities Exchange Commission (SEC)
Post-closing trial balance
Revenues are what to SE..
Events that are recorded as transactions
9. Lists all accounts and their balances
Adjusted Trial Balance
Recognition
FASB
Cash Basis of Accounting
10. Working totals
Depreciation
Steps for Income Summary Account
Footings
Income Statement
11. Balance sheet accounts - such as cash and accounts payable because they carry their end-of-period balances into the next accounting period
Permanent Accounts (Real Accounts)
Accrued revenues
Earnings Management
Stockholder's Equity =
12. Common Stock + Retained Earnings - Dividends + Revenues - Expenses
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
13. Net income on the income statement - and profitability comparisons from one accounting period to the next.
'Big Bath Theory'
Adjusting entries affect...
Liquidity
Long term assets are..
14. Companies present annual financial statements on the assumption that the business will continue to operate indefinitely
Accrued Expenses
GASB
Going Concern
FASB
15. If you're having a bad year - to dump everything into something else like pensions
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
16. A 12 month accounting period (Vary depending on slack seasons)
Matching Rule
Stockholder's Equity
Adjusting entries affect...
Fiscal Year
17. The predetermined time at which a transaction should be recorded.
'Big Bath Theory'
Interim Periods
Recognition Point
Statement of Retained Earnings:
18. A separate account that is paired with a related account
Contra Account
Accrual Accounting
Stockholder's Equity
Fiscal Year
19. At a specific point in time (Certain Date)....Assets - Liabilities - Stockholder's equity.
Balance Sheet
Accumulated Depreciation accounts are deducted from..
Not recorded as transactions
Board of Directors
20. The estimation of business's net income in terms of accounting periods.
Long term assets are..
Statement of Retained Earnings:
Periodicity
Adjusted Trial Balance
21. Match expenses with the revenues that they help generate - & vice versa.
Going Concern
Matching Rule
Consignment Sale
We Recognize A Transaction
22. Government Accounting Standards Board - similar to FASB - issues accounting standards for state and local governments.
Not recorded as transactions
Going Concern
Recognizing Unrecorded Expenses (RUE)
GASB
23. Forces a monetary value to a business transaction and accounting for the assets and liabilities that result from the transaction.
Deferral
Long term assets are..
Accrued revenues
Valuation
24. Society recognizes you as a partner of your partnership - so if you or they do something stupid - you are bound to that deal.
Mutual Agency
Adjusted Trial Balance
Cash Basis of Accounting
Matching Rule
25. Focuses on assigning a monetary value to a business transaction and accounting for assets and liabilities.
Operating Activities
Income Summary Account
Balance Sheet
Valuation Issue
26. Revenues that a company has earned but for which no entry has been made in the accounting records
Recognition Point
Normal Balance
Mutual Agency
Accrued revenues
27. Payments received in advance - and deposits made on goods and services
Allocating recorded - unearned revenues between 2 or more accounting periods (ARUR)
Accumulated Depreciation Accounts
Accrued Expenses
Long term assets are..
28. Determines corporate policy - declares dividends and appoints management.
Board of Directors
Valuation Issue
Allocating recorded costs between 2 or more accounting periods (ARC)
Cost Principle
29. 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.
Cash Basis of Accounting
When expenses exceed revenues..
Contra Account
Consignment Sale
30. Unless there is evidence to the contrary - the accountant assumed that the business will continue to operate indefinitely
Continuity Assumption
Allocating recorded - unearned revenues between 2 or more accounting periods (ARUR)
Adjusted Trial Balance
Dividends are what to SE
31. Accounting periods of less than a year.
Matching Rule
Cash Basis of Accounting
Earnings Management
Interim Periods
32. Determines that all temporary accounts have zero balances and to double check that total debits = total credits
Dividends are what to SE
Periodicity
Post-closing trial balance
Depreciation
33. Payments of rent - insurance - supplies - and the depreciation of plant and equipment
Stockholder's Equity =
Fiscal Year
Allocating recorded costs between 2 or more accounting periods (ARC)
Continuity Assumption
34. Deferral of an expense! (Except land)
Net Income =
Permanent Accounts (Real Accounts)
Long term assets are..
Recognizing unrecorded - earned revenues
35. The amount allocated to any one accounting period.
Depreciation
Closing Entries
FASB
Recognition
36. Close the revenues account - Close the expense account - Close the income summary account - Close the dividends account
Permanent Accounts (Real Accounts)
Mutual Agency
Dividends are what to SE
Steps for Income Summary Account
37. customer inquires about availability of service -company hires new employee -company signs contract to provide service in future
Permanent Accounts (Real Accounts)
Normal Balance
Post-closing trial balance
Not recorded as transactions
38. As an expense and the corresponding liability accumulate.
Long term assets are..
Dividends are what to SE
Allocating recorded - unearned revenues between 2 or more accounting periods (ARUR)
Accrued Expenses
39. Shows the changes in RE over an accounting period.
Accrued Expenses
Long term assets are..
Events that are recorded as transactions
Statement of Retained Earnings:
40. Accounting Equation
Steps for Income Summary Account
Consignment Sale
Accounting Equation
Stockholder's Equity =
41. Decreases
Dividends are what to SE
Mutual Agency
Final Trial Balance
Accumulated Depreciation accounts are deducted from..
42. Choosing the number of accounting periods
We Recognize A Transaction
Continuity
Sole proprietorship
Carrying Value
43. International Accounting Standards Board.
IASB
Deferral
Steps for Income Summary Account
Revenues are what to SE..
44. Selling goods and services to customers - employing managers and workers.
Earnings Management
Operating Activities
Interim Periods
Stockholder's Equity =
45. Sole worker of your business
Income Statement
Sole proprietorship
Securities Exchange Commission (SEC)
IASB
46. A body of people set up by Congress who protect the public by regulating the issuing - buying - and selling of stocks in the US.
Securities Exchange Commission (SEC)
Consignment Sale
Deferral
GAAP
47. 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
Stockholder's Equity
Operating Activities
Allocating recorded costs between 2 or more accounting periods (ARC)
Closing Entries
48. The ability to have enough cash to pay debts when they are due.
Accrual Accounting
Final Trial Balance
IASB
Liquidity
49. 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.
FASB
Recognizing unrecorded - earned revenues
When expenses exceed revenues..
Cash Basis of Accounting
50. Wages - Interest - and Income taxes that have been incurred but have not been recorded during an accounting period.
Recognizing Unrecorded Expenses (RUE)
Not recorded as transactions
Recognizing unrecorded - earned revenues
Matching Rule