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






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






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






4. Accounts that explain why assets went up from operations






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






6. A word that means a subtraction has occured






7. 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.






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






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






10. Accounts that explain why assets went down from operations






11. 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






12. Outsders to whom the business owes money






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






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






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






16. 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.






17. 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






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






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






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






21. The cost of business airplane fairs - trains and long-distance buses






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






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






24. Income-expenses






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






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






27. An account that gets subtracted from an asset account






28. Assets that help a business or person make money






29. Debts owned to people outside the company






30. Income - Expenses = Net Income






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






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






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






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






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






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






37. A supply of items a business has on hand






38. Recorded the cost as an asset






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






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






41. The official list of all business accounts






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






43. The amount of long-lived assets used up during operations






44. Assets that can be used to pay current liabilities






45. The natural period of time before a certain business activities tend to repeat -usually one year






46. Asset has not been sold but a gain or loss has occurred






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






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






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






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