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






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






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






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






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






6. Decreases






7. Revenues - Expenses






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






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






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






11. Deferral of an expense! (Except land)






12. 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.






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






14. 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






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






16. Cash account






17. Contributed Capital + Retained Earnings

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

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






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






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






22. 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






23. Choosing the number of accounting periods






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






25. Lists all accounts and their balances






26. As an expense and the corresponding liability accumulate.






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






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






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






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






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






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






33. 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)






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






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






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






37. Decreases






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






39. Postponement of recognition of an expense already paid.






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






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






42. 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.






43. Accounting Equation






44. Sole worker of your business






45. Increases






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






47. Working totals






48. Their related asset accounts on the balance sheet






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






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