Test your basic knowledge |

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






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






3. A word that means a subtraction has occured






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






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






6. 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.






7. Outsders to whom the business owes money






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






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






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






11. 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.






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






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






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






15. A supply of items a business has on hand






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






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






18. The official list of all business accounts






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






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






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






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






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






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






25. Income-expenses






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






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






28. An account that gets subtracted from an asset account






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






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






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






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






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






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






35. Accounts that explain why assets went up from operations






36. Assets that can be used to pay current liabilities






37. Assets that help a business or person make money






38. Debts owned to people outside the company






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






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






41. Income - Expenses = Net Income






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






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






44. Accounts that explain why assets went down from operations






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






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






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






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






49. Recorded the cost as an asset






50. 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