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






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






3. A word that means a subtraction has occured






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






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






6. 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






7. Debts owned to people outside the company






8. A supply of items a business has on hand






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






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






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






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






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






14. Assets that help a business or person make money






15. Recorded the cost as an asset






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






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






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






19. Assets that can be used to pay current liabilities






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






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






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






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






24. Income-expenses






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






26. The official list of all business accounts






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






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






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






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






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






32. Accounts that explain why assets went down from operations






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






34. An account that gets subtracted from an asset account






35. Income - Expenses = Net Income






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






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






38. Outsders to whom the business owes money






39. Accounts that explain why assets went up from operations






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






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






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






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






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






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






46. 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.






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






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






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






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