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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. Their related asset accounts on the balance sheet






2. A net loss occurs






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






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






5. People that estimate various things






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






7. Decreases






8. Cash account






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






10. Decreases






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






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






13. Accounting Equation






14. As an expense and the corresponding liability accumulate.






15. Lists all accounts and their balances






16. International Accounting Standards Board.






17. Sole worker of your business






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






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






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






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


22. Choosing the number of accounting periods






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






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






25. 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.






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






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






28. Deferral of an expense! (Except land)






29. Revenues - Expenses






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






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






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






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






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






35. Contributed Capital + Retained Earnings


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






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






38. Contains only balance sheet accounts.






39. 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)






40. 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






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






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






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






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






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






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






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






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






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


50. Postponement of recognition of an expense already paid.