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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. Assets that can be used to pay current liabilities






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






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






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






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






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






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






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






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






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






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






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






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






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






15. A word that means a subtraction has occured






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






17. Income - Expenses = Net Income






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






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






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






21. Debts owned to people outside the company






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






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






24. Accounts that explain why assets went down from operations






25. Income-expenses






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






27. The official list of all business accounts






28. Assets that help a business or person make money






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






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






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






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






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






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






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






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






37. An account that gets subtracted from an asset account






38. Recorded the cost as an asset






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






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






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






42. 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






43. A supply of items a business has on hand






44. Outsders to whom the business owes money






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






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






47. 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.






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. Accounts that explain why assets went up from operations






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