Test your basic knowledge |

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. A supply of items a business has on hand






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






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






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






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






6. Income-expenses






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






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






9. 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.






10. Debts owned to people outside the company






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






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






13. 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.






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






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






16. Assets that help a business or person make money






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






18. A word that means a subtraction has occured






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






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






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






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






23. Accounts that explain why assets went up from operations






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






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






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






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






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






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






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






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






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






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






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






35. The official list of all business accounts






36. Income - Expenses = Net Income






37. Recorded the cost as an asset






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






39. Outsders to whom the business owes money






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






41. Assets that can be used to pay current liabilities






42. An account that gets subtracted from an asset account






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






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






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






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






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






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






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






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