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






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






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






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






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






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






7. Decreases






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






9. Lists all accounts and their balances






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






11. People that estimate various things






12. 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.






13. 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.






14. Postponement of recognition of an expense already paid.






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






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






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






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






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






20. Increases






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

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






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






24. Contributed Capital + Retained Earnings

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25. As an expense and the corresponding liability accumulate.






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






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






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






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






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






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






32. A net loss occurs






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

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34. Choosing the number of accounting periods






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






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






37. International Accounting Standards Board.






38. 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






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






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






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






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






43. Accounting periods of less than a year.






44. Revenues - Expenses






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






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






48. Deferral of an expense! (Except land)






49. Sole worker of your business






50. 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)