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






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






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






5. Income-expenses






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






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






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






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






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






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






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






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






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






16. Assets that can be used to pay current liabilities






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






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






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






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






21. Income - Expenses = Net Income






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






23. An account that gets subtracted from an asset account






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






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






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






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






28. Recorded the cost as an asset






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






30. The official list of all business accounts






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






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






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






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






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






36. A supply of items a business has on hand






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






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






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






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






41. Accounts that explain why assets went down from operations






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






43. 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






44. Outsders to whom the business owes money






45. Debts owned to people outside the company






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






47. Assets that help a business or person make money






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






49. Accounts that explain why assets went up from operations






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