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






2. The official list of all business accounts






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






4. Accounts that explain why assets went down from operations






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






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






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






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






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






10. Income-expenses






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






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






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






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






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






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






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






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






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






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






21. Income - Expenses = Net Income






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






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






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






25. Recorded the cost as an asset






26. A supply of items a business has on hand






27. Debts owned to people outside the company






28. 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.






29. Assets that can be used to pay current liabilities






30. A word that means a subtraction has occured






31. Accounts that explain why assets went up from operations






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






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






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






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






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






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






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






39. 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






40. An account that gets subtracted from an asset account






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






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






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






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






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






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






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






48. 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






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






50. Assets that help a business or person make money