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






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






3. A word that means a subtraction has occured






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






5. Assets that help a business or person make money






6. 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






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






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






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






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






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






12. Debts owned to people outside the company






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






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






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






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






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






18. Accounts that explain why assets went down from operations






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






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






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






22. The official list of all business accounts






23. An account that gets subtracted from an asset account






24. Outsders to whom the business owes money






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






26. Recorded the cost as an asset






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






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






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






31. Accounts that explain why assets went up from operations






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






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






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






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






37. Income - Expenses = Net Income






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






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






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






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






42. 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






43. Income-expenses






44. A supply of items a business has on hand






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






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






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






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






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






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