SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
CLEP Financial Accounting Vocab
Start Test
Study First
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. Accounts that explain why assets went up from operations
Face amount
Income
Direct method
operating cycle
2. The amount of long-lived assets used up during operations
Depreciation Expense
Assets
Discount a note
Balance sheet
3. A word that means a subtraction has occured
creditors
Capitalized
Net
Balance sheet
4. The inventory system that averages the cost of all items in inventory and assigns that averaged cost the the items sold.
Balance sheet
Weighted average
owners equity
present value of a note
5. Method of journalizing and posting accounts at the same time by recording transac vertically in columns
Vertical Journal Entries
Contra-asset account
Chart of Accounts
Sales
6. Recorded the cost as an asset
present value of a note
future value of a note
Capitalized
Travel Expense
7. The 12 month period a business used to report the results of its operatons
owners equity
fiscal year
Sales
creditors
8. Where cash came from and where it went - Cash flow from operations - cash flow from investing activities - cash flow from financing activities - calculation of (1) net cash flow - and (2) cash - end of period
Cash Flow Statement
Depreciable cost
Face interest
liabilities
9. The financial report that shows business assets - liabilities - and the owners equity on a particular day
Income Statement
Net Income
Travel Expense
Balance sheet
10. Debts that must be paid within one year or one operating cycle - whichever is longer
unrealized gain/loss
Discount a note
current liabilities
Balance sheet
11. Assets that help a business or person make money
Net Income
Direct method
T-account
Capital
12. Asset has not been sold but a gain or loss has occurred
interest-bearing note
unrealized gain/loss
Percentage Analysis
Income statement
13. Income-expenses
Net income
Inventory
Cost of goods sold
Percentage Analysis
14. Modified accelerated cost recovery syste - for which IRS tables tell the rate by which to multiply an assets historical cost
Capital
Balance sheet
owners equity
MACRS
15. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `
Direct method
Face interest
Weighted average
fiscal year
16. Debts owned to people outside the company
liabilities
Draw (Withdrawl)
Account
Face interest
17. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.
Contra Account
Cost of goods sold
Capitalized
operating cycle
18. The financial report that shows the result of business operations over a period of time
Income
Discount a note
Income Statement
fiscal year
19. Income - Expenses = Net Income
Discount a note
Accelerated depr method
Direct method
Net Income
20. The financial report that shows the result of biz operations over a period of time
fiscal year
Contra Account
Statement of Owners Equity
Income statement
21. That porition of the business the owner gets to keep after paying all creditors
unrealized gain/loss
Income Statement
Depreciable cost
owners equity
22. The amount borrowed - or the principal. Interest-bearing notes show the present value as the face amount
operating cycle
Indirect method
Cost of goods sold
present value of a note
23. The cost the the biz of the goods it sells
Income
Netted
Cost of goods sold
present value of a note
24. The contra-asset account that accumulates all the depreciation of long-lived assets over the years
Accumulated Depreciation
Non-operating
Sales
operating cycle
25. A note with an interest rate written on the face - whose face amount is the present value
Net income
Account
Face amount
interest-bearing note
26. The official list of all business accounts
Net
Perpetual inventory method
Accelerated depr method
Chart of Accounts
27. When money is changed into another asset that helps the business make money
Capitalized
Travel Expense
unrealized gain/loss
Net income
28. Money is 'expensed' if it is gone forever - if there remains no useful asset as a result of the spending. The opposite is CAPITALIZED
Expensed
Indirect method
future value of a note
Balance sheet
29. Contra-asset account that accumulates all the deprec of long lived assets over the years
Discount a note
current assets
Accumulated Depreciation
Balance sheet
30. The dollar amount written on the face of the note
Face amount
Discount a note
owners equity
Account
31. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers
creditors
Netted
Statement of Owners Equity
Capitalized
32. A supply of items a business has on hand
fiscal year
Inventory
unrealized gain/loss
Expenses
33. The amount borrowed plus the interest up to a maturity date
future value of a note
Accumulated Depreciation
current assets
Accelerated depr method
34. A depr method that results in higher depr exp in an assets early years
Net Income
Accelerated depr method
Sales
interest-bearing note
35. To sell a note to a bank that subtracts a discount - giving the seller the proceeds`
Discount a note
Accumulated Depreciation
interest-bearing note
owners equity
36. The inventory method that increases the inventory account with every purchase and lowers the inventory with every sale.
MACRS
Perpetual inventory method
unrealized gain/loss
Expensed
37. A tool to keep track of the ops and downs in account. The ups go on one side of the T and the downs go on the other
Capital
interest-bearing note
Assets
T-account
38. The cost to the business of the goods that it sells
Inventory
T-account
Direct method
Cost of goods sold
39. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.
Travel Expense
Draw (Withdrawl)
Transportation expense
Accelerated depr method
40. Usual method - starts with NI and uses the changes in the A&L accounts to adjust NI into cash flow from operations
Direct method
Indirect method
MACRS
Perpetual inventory method
41. The inventory method that keeps track of merchandise costs in various purchases and contra-purchases accounts and then computes cost of goods sold on the income statement. Inventory on the books is adjusted only at year-end.
Face interest
Cash Flow Statement
Discount a note
Periodic inventory method
42. The cost of business airplane fairs - trains and long-distance buses
Expenses
Transportation expense
Periodic inventory method
Income
43. Money is 'expensed' if it is gone forever - if there remains no useful assert as a result of the spending. THe opposite of capitalized. `
Cost of goods sold
Face interest
Indirect method
Expensed
44. The amount of the historical cost of an asset that gets allocated over the useful life of the asset
Depreciable cost
Accumulated Depreciation
Weighted average
T-account
45. The natural period of time before a certain business activities tend to repeat -usually one year
liabilities
Income statement
operating cycle
Travel Expense
46. The interest rate written on the face of a note
Face interest
operating cycle
Capital
Draw (Withdrawl)
47. The cost of living while away from home of business
Accumulated Depreciation
Face amount
Travel Expense
Income
48. Non-operating exp or revenues come from transactions that are not part of normal biz operations
Cost of goods sold
Weighted average
Non-operating
Depreciable cost
49. A place on the financial books to keep track of financial info that the owners want to know
Contra-asset account
present value of a note
Net Income
Account
50. A financial statement that calculates an end-of-period balance of the owner's equity account
Statement of Owners Equity
Account
MACRS
Net income