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






2. Assets that help a business or person make money






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






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






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






6. 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.






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






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






9. A supply of items a business has on hand






10. Recorded the cost as an asset






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






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






13. Accounts that explain why assets went down from operations






14. Outsders to whom the business owes money






15. 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.






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






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






18. Contra-asset account that accumulates all the deprec of long lived assets over the years






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






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






21. Method of journalizing and posting accounts at the same time by recording transac vertically in columns






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






23. An account that gets subtracted from an asset account






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






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






26. 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






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






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






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






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






31. Income - Expenses = Net Income






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






33. A word that means a subtraction has occured






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






35. Income-expenses






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






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






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






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






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






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






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






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






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






45. Accounts that explain why assets went up from operations






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






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






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






49. 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






50. The official list of all business accounts