Test your basic knowledge |

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






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






3. 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






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






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






6. People that estimate various things






7. Contributed Capital + Retained Earnings


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






9. Postponement of recognition of an expense already paid.






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






11. The amount allocated to any one accounting period.






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






13. Accounting Equation






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






15. Decreases






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






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






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






19. 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.






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






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






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






23. Contains only balance sheet accounts.






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






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






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






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






28. Revenues - Expenses






29. Increases






30. Sole worker of your business






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






32. 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






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






34. Decreases






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


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






37. A net loss occurs






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






39. Working totals






40. Choosing the number of accounting periods






41. Deferral of an expense! (Except land)






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






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






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






45. Their related asset accounts on the balance sheet






46. 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.






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






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






49. As an expense and the corresponding liability accumulate.






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