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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. A word that means a subtraction has occured






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






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






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






5. Accounts that explain why assets went down from operations






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






7. A supply of items a business has on hand






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






9. An account that gets subtracted from an asset account






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






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






12. 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.






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






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






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






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






17. 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






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






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






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






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






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






23. Recorded the cost as an asset






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






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






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






27. The official list of all business accounts






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






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






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






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






32. Assets that can be used to pay current liabilities






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






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






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






36. Income-expenses






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






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






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






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. Debts owned to people outside the company






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






44. Outsders to whom the business owes money






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






46. 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






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






48. Accounts that explain why assets went up from operations






49. Income - Expenses = Net Income






50. Assets that help a business or person make money