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






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






3. Contributed Capital + Retained Earnings

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






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






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






7. Cash account






8. Increases






9. Lists all accounts and their balances






10. Working totals






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






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

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






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






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

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






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






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






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






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






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






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






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






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






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






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






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






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






29. 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.






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






31. Accounting periods of less than a year.






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






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






34. Deferral of an expense! (Except land)






35. The amount allocated to any one accounting period.






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






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






38. As an expense and the corresponding liability accumulate.






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






40. Accounting Equation






41. Decreases






42. Choosing the number of accounting periods






43. International Accounting Standards Board.






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






45. Sole worker of your business






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






47. 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






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






49. 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.






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