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Test your basic knowledge |
CLEP Financial Accounting Vocab
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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. The dollar amount written on the face of the note
Face amount
MACRS
Depreciable cost
Weighted average
2. Non-operating exp or revenues come from transactions that are not part of normal biz operations
Face interest
Discount a note
Income
Non-operating
3. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `
Weighted average
Contra Account
Face amount
Direct method
4. The cost the the biz of the goods it sells
Contra Account
Cost of goods sold
Periodic inventory method
Net Income
5. The amount borrowed - or the principal. Interest-bearing notes show the present value as the face amount
MACRS
Balance sheet
Face interest
present value of a note
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. `
operating cycle
creditors
Expensed
liabilities
7. 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.
Percentage Analysis
Expenses
unrealized gain/loss
Vertical Journal Entries
8. The cost to the business of the goods that it sells
present value of a note
Expensed
Perpetual inventory method
Cost of goods sold
9. The financial report that shows the result of biz operations over a period of time
Income statement
Percentage Analysis
Capitalized
Depreciable cost
10. Debts that must be paid within one year or one operating cycle - whichever is longer
Accumulated Depreciation
Cost of goods sold
liabilities
current liabilities
11. A note with an interest rate written on the face - whose face amount is the present value
owners equity
interest-bearing note
Percentage Analysis
Sales
12. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.
Draw (Withdrawl)
unrealized gain/loss
Perpetual inventory method
Contra-asset account
13. A supply of items a business has on hand
Inventory
Account
Contra-asset account
Indirect method
14. A word that means a subtraction has occured
Face interest
Weighted average
Cost of goods sold
Net
15. That porition of the business the owner gets to keep after paying all creditors
Face interest
Capitalized
owners equity
Non-operating
16. The contra-asset account that accumulates all the depreciation of long-lived assets over the years
Accumulated Depreciation
Income statement
Accelerated depr method
Chart of Accounts
17. The financial report that shows the result of business operations over a period of time
Income Statement
Expenses
Inventory
fiscal year
18. A financial statement that calculates an end-of-period balance of the owner's equity account
Account
creditors
Perpetual inventory method
Statement of Owners Equity
19. The inventory system that averages the cost of all items in inventory and assigns that averaged cost the the items sold.
Weighted average
Transportation expense
Netted
Expensed
20. Asset has not been sold but a gain or loss has occurred
unrealized gain/loss
Depreciable cost
Expenses
owners equity
21. Economic resources that the business plans to use in the future to make money
Assets
Non-operating
Face amount
Cash Flow Statement
22. The amount of long-lived assets used up during operations
Capital
Chart of Accounts
Sales
Depreciation Expense
23. An income account that explains the increase in business assets as a result of selling goods
Sales
Indirect method
Contra-asset account
Non-operating
24. Usual method - starts with NI and uses the changes in the A&L accounts to adjust NI into cash flow from operations
Face interest
Indirect method
Capitalized
Accumulated Depreciation
25. Modified accelerated cost recovery syste - for which IRS tables tell the rate by which to multiply an assets historical cost
Indirect method
MACRS
Net
creditors
26. To sell a note to a bank that subtracts a discount - giving the seller the proceeds`
T-account
Chart of Accounts
Expenses
Discount a note
27. An account that gets subtracted from an asset account
Discount a note
Contra-asset account
Capitalized
Vertical Journal Entries
28. Assets that can be used to pay current liabilities
Vertical Journal Entries
Statement of Owners Equity
Capital
current assets
29. The 12 month period a business used to report the results of its operatons
Face amount
Non-operating
fiscal year
Contra-asset account
30. Income - Expenses = Net Income
Inventory
Net Income
Sales
Non-operating
31. 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
T-account
Non-operating
Accelerated depr method
Vertical Journal Entries
32. The natural period of time before a certain business activities tend to repeat -usually one year
Cost of goods sold
Periodic inventory method
operating cycle
T-account
33. The financial report that shows business assets - liabilities - and the owners equity on a particular day
current liabilities
Expenses
unrealized gain/loss
Balance sheet
34. Recorded the cost as an asset
Transportation expense
MACRS
Expensed
Capitalized
35. The amount borrowed plus the interest up to a maturity date
Discount a note
future value of a note
Accelerated depr method
Accumulated Depreciation
36. 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
Perpetual inventory method
present value of a note
Capital
Cash Flow Statement
37. Method of journalizing and posting accounts at the same time by recording transac vertically in columns
Net Income
fiscal year
Vertical Journal Entries
Capital
38. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.
Contra Account
Income
Income Statement
Draw (Withdrawl)
39. The cost of business airplane fairs - trains and long-distance buses
Balance sheet
Transportation expense
Contra-asset account
liabilities
40. The cost of living while away from home of business
Income statement
Travel Expense
Accumulated Depreciation
Account
41. When money is changed into another asset that helps the business make money
Weighted average
Account
Capitalized
creditors
42. Outsders to whom the business owes money
Cost of goods sold
current assets
Draw (Withdrawl)
creditors
43. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers
Netted
Expensed
fiscal year
Net
44. Accounts that explain why assets went up from operations
Income
future value of a note
Income Statement
Transportation expense
45. Contra-asset account that accumulates all the deprec of long lived assets over the years
Cash Flow Statement
creditors
Accumulated Depreciation
Netted
46. Debts owned to people outside the company
liabilities
present value of a note
Sales
Face interest
47. Accounts that explain why assets went down from operations
Account
Expenses
Net
Assets
48. The amount of the historical cost of an asset that gets allocated over the useful life of the asset
Expenses
Depreciable cost
Assets
Depreciation Expense
49. A place on the financial books to keep track of financial info that the owners want to know
Accumulated Depreciation
Cost of goods sold
Account
Vertical Journal Entries
50. 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.
Periodic inventory method
Cost of goods sold
MACRS
Discount a note