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






2. Deferral of an expense! (Except land)






3. Accounting periods of less than a year.






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






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






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






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






9. 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)






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






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






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

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






14. Revenues - Expenses






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






16. People that estimate various things






17. Sole worker of your business






18. Postponement of recognition of an expense already paid.






19. 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






20. Contains only balance sheet accounts.






21. A net loss occurs






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






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






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






25. Decreases






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






27. 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






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






29. International Accounting Standards Board.






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






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






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






33. Working totals






34. 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.






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






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






37. 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.






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






39. Contributed Capital + Retained Earnings

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






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






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






43. Increases






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






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






46. Choosing the number of accounting periods






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






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






49. The amount allocated to any one accounting period.






50. Cash account