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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. Accounts that explain why assets went up from operations






2. Outsders to whom the business owes money






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






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






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






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






7. An account that gets subtracted from an asset account






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






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






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






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






12. Income-expenses






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






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






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






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






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






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






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






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






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






22. A word that means a subtraction has occured






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






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






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






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






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






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






29. 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






30. Income - Expenses = Net Income






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






32. Assets that help a business or person make money






33. Debts owned to people outside the company






34. 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.






35. 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






36. Assets that can be used to pay current liabilities






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






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






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






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






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






42. The official list of all business accounts






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






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






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






46. A supply of items a business has on hand






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






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






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






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