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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. Money is 'expensed' if it is gone forever - if there remains no useful assert as a result of the spending. THe opposite of capitalized. `
Indirect method
Discount a note
Expensed
Face amount
2. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.
future value of a note
Sales
Account
Contra Account
3. A word that means a subtraction has occured
Indirect method
interest-bearing note
Depreciable cost
Net
4. Non-operating exp or revenues come from transactions that are not part of normal biz operations
owners equity
Non-operating
present value of a note
Travel Expense
5. Assets that help a business or person make money
Accelerated depr method
Capital
Net income
Weighted average
6. 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
fiscal year
interest-bearing note
Accumulated Depreciation
Cash Flow Statement
7. A depr method that results in higher depr exp in an assets early years
Cost of goods sold
Netted
Accelerated depr method
Depreciable cost
8. The 12 month period a business used to report the results of its operatons
fiscal year
Travel Expense
Expensed
Income statement
9. The amount of long-lived assets used up during operations
Depreciation Expense
Net
Capitalized
Accelerated depr method
10. The dollar amount written on the face of the note
Netted
Account
Net
Face amount
11. The contra-asset account that accumulates all the depreciation of long-lived assets over the years
Account
Accumulated Depreciation
fiscal year
creditors
12. Debts owned to people outside the company
liabilities
Net Income
Expenses
Balance sheet
13. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.
Non-operating
Net Income
Draw (Withdrawl)
future value of a note
14. Usual method - starts with NI and uses the changes in the A&L accounts to adjust NI into cash flow from operations
liabilities
Indirect method
Periodic inventory method
MACRS
15. The financial report that shows business assets - liabilities - and the owners equity on a particular day
Balance sheet
Income statement
Net income
Perpetual inventory method
16. When money is changed into another asset that helps the business make money
Direct method
Capitalized
MACRS
Expensed
17. The financial report that shows the result of biz operations over a period of time
Income statement
Contra-asset account
Chart of Accounts
T-account
18. Accounts that explain why assets went down from operations
MACRS
Expenses
Cost of goods sold
Face amount
19. The financial report that shows the result of business operations over a period of time
Accelerated depr method
Income Statement
Perpetual inventory method
current assets
20. To sell a note to a bank that subtracts a discount - giving the seller the proceeds`
Cost of goods sold
Discount a note
current liabilities
Expensed
21. The inventory method that increases the inventory account with every purchase and lowers the inventory with every sale.
Perpetual inventory method
Inventory
Account
Net Income
22. The official list of all business accounts
future value of a note
Accumulated Depreciation
Chart of Accounts
Accelerated depr method
23. An account that gets subtracted from an asset account
Periodic inventory method
Contra-asset account
Expenses
Capitalized
24. Outsders to whom the business owes money
interest-bearing note
creditors
Netted
Assets
25. The amount of the historical cost of an asset that gets allocated over the useful life of the asset
Depreciable cost
Capitalized
T-account
Accumulated Depreciation
26. Recorded the cost as an asset
Statement of Owners Equity
Capitalized
Periodic inventory method
Accelerated depr method
27. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers
Cost of goods sold
Netted
interest-bearing note
Vertical Journal Entries
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
Expensed
MACRS
present value of a note
Balance sheet
29. A note with an interest rate written on the face - whose face amount is the present value
Expenses
Capitalized
interest-bearing note
current liabilities
30. The cost of business airplane fairs - trains and long-distance buses
Perpetual inventory method
operating cycle
Transportation expense
Income Statement
31. Accounts that explain why assets went up from operations
Income
Assets
operating cycle
Inventory
32. An income account that explains the increase in business assets as a result of selling goods
Weighted average
Sales
Cost of goods sold
present value of a note
33. Contra-asset account that accumulates all the deprec of long lived assets over the years
Accumulated Depreciation
Sales
owners equity
Face amount
34. 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.
Capital
liabilities
Periodic inventory method
Inventory
35. The amount borrowed - or the principal. Interest-bearing notes show the present value as the face amount
creditors
Face interest
Account
present value of a note
36. Modified accelerated cost recovery syste - for which IRS tables tell the rate by which to multiply an assets historical cost
Accumulated Depreciation
Net Income
MACRS
Perpetual inventory method
37. Income - Expenses = Net Income
Chart of Accounts
owners equity
Net Income
Travel Expense
38. Debts that must be paid within one year or one operating cycle - whichever is longer
current liabilities
Assets
operating cycle
Vertical Journal Entries
39. The cost to the business of the goods that it sells
Netted
interest-bearing note
Depreciation Expense
Cost of goods sold
40. A financial statement that calculates an end-of-period balance of the owner's equity account
Statement of Owners Equity
Cost of goods sold
Weighted average
Vertical Journal Entries
41. Method of journalizing and posting accounts at the same time by recording transac vertically in columns
Expensed
Vertical Journal Entries
Periodic inventory method
Chart of Accounts
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
T-account
Perpetual inventory method
Capitalized
Expensed
43. Income-expenses
Cash Flow Statement
Net income
Travel Expense
future value of a note
44. A supply of items a business has on hand
Inventory
Expenses
Capitalized
Vertical Journal Entries
45. Economic resources that the business plans to use in the future to make money
Assets
Contra Account
Net Income
Vertical Journal Entries
46. A place on the financial books to keep track of financial info that the owners want to know
unrealized gain/loss
Account
owners equity
Inventory
47. The amount borrowed plus the interest up to a maturity date
Income
Percentage Analysis
future value of a note
Assets
48. The interest rate written on the face of a note
Contra-asset account
Statement of Owners Equity
Weighted average
Face interest
49. That porition of the business the owner gets to keep after paying all creditors
Draw (Withdrawl)
creditors
owners equity
Periodic inventory method
50. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `
Accumulated Depreciation
present value of a note
Capitalized
Direct method