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






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






3. A supply of items a business has on hand






4. Outsders to whom the business owes money






5. Recorded the cost as an asset






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






7. 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.






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






9. Assets that help a business or person make money






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






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






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






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






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






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






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






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






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






19. The official list of all business accounts






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






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






22. Accounts that explain why assets went down from operations






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






24. Debts owned to people outside the company






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






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






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






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






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






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






31. Income-expenses






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






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






34. 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.






35. A word that means a subtraction has occured






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






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






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






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






40. 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






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






42. Assets that can be used to pay current liabilities






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






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






45. Accounts that explain why assets went up from operations






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






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






48. Income - Expenses = Net Income






49. 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






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