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






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






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






4. A word that means a subtraction has occured






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






6. Assets that help a business or person make money






7. Debts owned to people outside the company






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






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






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






11. An account that gets subtracted from an asset account






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






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






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






15. A supply of items a business has on hand






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






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






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






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






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






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






22. Assets that can be used to pay current liabilities






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






24. 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






25. The official list of all business accounts






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






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






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






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






30. Recorded the cost as an asset






31. Income-expenses






32. Accounts that explain why assets went up from operations






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






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






35. Income - Expenses = Net Income






36. Accounts that explain why assets went down from operations






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






38. 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.






39. Outsders to whom the business owes money






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






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






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






43. 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.






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






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






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






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






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






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






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