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






2. Assets that can be used to pay current liabilities






3. The official list of all business accounts






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






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






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






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






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. Accounts that explain why assets went down from operations






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






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






13. Income-expenses






14. Assets that help a business or person make money






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






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






17. Outsders to whom the business owes money






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






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






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






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






22. A word that means a subtraction has occured






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






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






25. Income - Expenses = Net Income






26. Accounts that explain why assets went up from operations






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






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






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






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






31. A supply of items a business has on hand






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






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






34. 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






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






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






37. 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.






38. 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






39. Recorded the cost as an asset






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






41. 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.






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






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






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






45. An account that gets subtracted from an asset account






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






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






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






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






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