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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. Recorded the cost as an asset






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






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






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






5. Accounts that explain why assets went up from operations






6. Income - Expenses = Net Income






7. An account that gets subtracted from an asset account






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






9. A supply of items a business has on hand






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






11. Debts owned to people outside the company






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






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






14. Income-expenses






15. 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.






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






17. The official list of all business accounts






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






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






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






21. Outsders to whom the business owes money






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






23. Assets that can be used to pay current liabilities






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






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






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






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






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






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






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






31. A word that means a subtraction has occured






32. 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.






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






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






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






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






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






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






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






40. Assets that help a business or person make money






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






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






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






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






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






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






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






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






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






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