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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. Cash account






2. Decreases






3. Their related asset accounts on the balance sheet






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






5. 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.






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






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






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






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






10. Lists all accounts and their balances






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






12. Accounting periods of less than a year.






13. Sole worker of your business






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






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






16. Decreases






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






18. Contains only balance sheet accounts.






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






20. Choosing the number of accounting periods






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






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






23. Accounting Equation






24. As an expense and the corresponding liability accumulate.






25. Postponement of recognition of an expense already paid.






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






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






28. International Accounting Standards Board.






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


30. A net loss occurs






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






32. Revenues - Expenses






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






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






35. Deferral of an expense! (Except land)






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






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






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






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






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






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






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






43. Working totals






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






45. Deals with all techniques accountants use to apply the matching rule: Recording revenue when they are earned - Recording expenses when they are incurred - More closely related to profitability - Adjusting the accounts






46. 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.






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






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






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






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