Test your basic knowledge |

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. Their related asset accounts on the balance sheet






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






3. Sole worker of your business






4. 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.






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






6. As an expense and the corresponding liability accumulate.






7. 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






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






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






10. 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


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






12. Increases






13. Decreases






14. Cash account






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






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






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






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






19. 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


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






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






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






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






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






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






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






27. Accounting Equation






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






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






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






31. 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.






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






33. Revenues - Expenses






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






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






36. People that estimate various things






37. The amount allocated to any one accounting period.






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






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






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






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






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






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






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






45. A net loss occurs






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






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






48. Decreases






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






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