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CLEP Financial Accounting Vocab

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. Debts that must be paid within one year or one operating cycle - whichever is longer






2. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.






3. Accounts that explain why assets went up from operations






4. An income account that explains the increase in business assets as a result of selling goods






5. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `






6. Money is 'expensed' if it is gone forever - if there remains no useful assert as a result of the spending. THe opposite of capitalized. `






7. Income-expenses






8. 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






9. The cost to the business of the goods that it sells






10. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.






11. Money is 'expensed' if it is gone forever - if there remains no useful asset as a result of the spending. The opposite is CAPITALIZED






12. Recorded the cost as an asset






13. A financial statement that calculates an end-of-period balance of the owner's equity account






14. Debts owned to people outside the company






15. Outsders to whom the business owes money






16. The interest rate written on the face of a note






17. The amount borrowed plus the interest up to a maturity date






18. A word that means a subtraction has occured






19. Non-operating exp or revenues come from transactions that are not part of normal biz operations






20. Income - Expenses = Net Income






21. The inventory method that increases the inventory account with every purchase and lowers the inventory with every sale.






22. The cost the the biz of the goods it sells






23. Assets that can be used to pay current liabilities






24. When money is changed into another asset that helps the business make money






25. A depr method that results in higher depr exp in an assets early years






26. The financial report that shows business assets - liabilities - and the owners equity on a particular day






27. 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






28. To sell a note to a bank that subtracts a discount - giving the seller the proceeds`






29. The cost of living while away from home of business






30. Assets that help a business or person make money






31. The financial report that shows the result of business operations over a period of time






32. Economic resources that the business plans to use in the future to make money






33. The amount of the historical cost of an asset that gets allocated over the useful life of the asset






34. An account that gets subtracted from an asset account






35. A financial statement analysis technique in which one number is assigned 100% and all other numbers are expressed as a percentage of the first number. In balance sheets. the key number is total assets. In income statements - the key # is sales.






36. The contra-asset account that accumulates all the depreciation of long-lived assets over the years






37. The financial report that shows the result of biz operations over a period of time






38. That porition of the business the owner gets to keep after paying all creditors






39. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers






40. The dollar amount written on the face of the note






41. A note with an interest rate written on the face - whose face amount is the present value






42. The official list of all business accounts






43. A supply of items a business has on hand






44. Modified accelerated cost recovery syste - for which IRS tables tell the rate by which to multiply an assets historical cost






45. Usual method - starts with NI and uses the changes in the A&L accounts to adjust NI into cash flow from operations






46. Accounts that explain why assets went down from operations






47. The inventory system that averages the cost of all items in inventory and assigns that averaged cost the the items sold.






48. The 12 month period a business used to report the results of its operatons






49. The amount borrowed - or the principal. Interest-bearing notes show the present value as the face amount






50. A place on the financial books to keep track of financial info that the owners want to know