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






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






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






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






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






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. `






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






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






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






10. Debts owned to people outside the company






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






12. 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






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






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






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






16. Assets that can be used to pay current liabilities






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






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






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






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






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






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






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






24. Assets that help a business or person make money






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






26. 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.






27. A word that means a subtraction has occured






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






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






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






31. 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






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






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






34. A supply of items a business has on hand






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






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






37. Income - Expenses = Net Income






38. Accounts that explain why assets went up from operations






39. Outsders to whom the business owes money






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






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






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






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






44. Recorded the cost as an asset






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






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






47. An account that gets subtracted from an asset account






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






49. Income-expenses






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