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






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






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






4. The official list of all business accounts






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






6. 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






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






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






9. 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.






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






11. Income - Expenses = Net Income






12. Assets that can be used to pay current liabilities






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






14. Outsders to whom the business owes money






15. A word that means a subtraction has occured






16. An account that gets subtracted from an asset account






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






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






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






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






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






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






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






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






25. A supply of items a business has on hand






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






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






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






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






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






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






33. A financial statement analysis technique in which one number is assigned 100% and all other numbers are expressed as a percentage of the first number. In balance sheets. the key number is total assets. In income statements - the key # is sales.






34. Accounts that explain why assets went up from operations






35. Accounts that explain why assets went down from operations






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






37. Income-expenses






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






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






40. Recorded the cost as an asset






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






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






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






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






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






46. Debts owned to people outside the company






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






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






49. Assets that help a business or person make money






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