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Test your basic knowledge |
CLEP Financial Accounting Vocab
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Study First
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. Assets that can be used to pay current liabilities
Depreciation Expense
current assets
Perpetual inventory method
Expenses
2. An account that gets subtracted from an asset account
Contra-asset account
Expenses
Income statement
Sales
3. The dollar amount written on the face of the note
Face amount
Capitalized
Income Statement
Accelerated depr method
4. Non-operating exp or revenues come from transactions that are not part of normal biz operations
Non-operating
Balance sheet
Contra-asset account
Income statement
5. A financial statement that calculates an end-of-period balance of the owner's equity account
unrealized gain/loss
Statement of Owners Equity
Chart of Accounts
Capital
6. The official list of all business accounts
Percentage Analysis
Sales
Net
Chart of Accounts
7. The cost of business airplane fairs - trains and long-distance buses
Face interest
Transportation expense
Face amount
Depreciation Expense
8. To sell a note to a bank that subtracts a discount - giving the seller the proceeds`
Perpetual inventory method
Face amount
MACRS
Discount a note
9. A word that means a subtraction has occured
Non-operating
Accumulated Depreciation
Net
Income statement
10. When money is changed into another asset that helps the business make money
Capitalized
fiscal year
Income
Percentage Analysis
11. Recorded the cost as an asset
Expenses
Cost of goods sold
owners equity
Capitalized
12. Money is 'expensed' if it is gone forever - if there remains no useful asset as a result of the spending. The opposite is CAPITALIZED
Expensed
Account
Capitalized
Cost of goods sold
13. The inventory method that increases the inventory account with every purchase and lowers the inventory with every sale.
Percentage Analysis
Net income
Perpetual inventory method
owners equity
14. Method of journalizing and posting accounts at the same time by recording transac vertically in columns
Account
Capitalized
Income Statement
Vertical Journal Entries
15. The natural period of time before a certain business activities tend to repeat -usually one year
Net
Income Statement
operating cycle
Assets
16. Economic resources that the business plans to use in the future to make money
Assets
owners equity
fiscal year
Statement of Owners Equity
17. A place on the financial books to keep track of financial info that the owners want to know
Travel Expense
Perpetual inventory method
Account
Accumulated Depreciation
18. An income account that explains the increase in business assets as a result of selling goods
fiscal year
Account
Sales
current liabilities
19. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers
fiscal year
Netted
current liabilities
current assets
20. Usual method - starts with NI and uses the changes in the A&L accounts to adjust NI into cash flow from operations
T-account
Indirect method
creditors
Cost of goods sold
21. The amount of long-lived assets used up during operations
MACRS
Depreciation Expense
Non-operating
Net Income
22. A note with an interest rate written on the face - whose face amount is the present value
unrealized gain/loss
interest-bearing note
Statement of Owners Equity
Expenses
23. The inventory system that averages the cost of all items in inventory and assigns that averaged cost the the items sold.
Depreciation Expense
Weighted average
Cash Flow Statement
Face interest
24. Income - Expenses = Net Income
Net Income
Account
Accumulated Depreciation
Accelerated depr method
25. The contra-asset account that accumulates all the depreciation of long-lived assets over the years
Discount a note
Income statement
Income
Accumulated Depreciation
26. The cost the the biz of the goods it sells
Contra-asset account
Cost of goods sold
Capitalized
Travel Expense
27. Assets that help a business or person make money
Contra-asset account
Cost of goods sold
Capital
Cost of goods sold
28. 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.
Cost of goods sold
Transportation expense
Percentage Analysis
Balance sheet
29. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `
Assets
Percentage Analysis
Direct method
Income
30. Accounts that explain why assets went up from operations
fiscal year
Income
Direct method
unrealized gain/loss
31. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.
Netted
current liabilities
Depreciable cost
Contra Account
32. Income-expenses
Expensed
operating cycle
Net income
Balance sheet
33. The 12 month period a business used to report the results of its operatons
Accumulated Depreciation
fiscal year
Discount a note
future value of a note
34. A supply of items a business has on hand
Chart of Accounts
Discount a note
Inventory
Contra-asset account
35. The amount borrowed - or the principal. Interest-bearing notes show the present value as the face amount
Expensed
future value of a note
Percentage Analysis
present value of a note
36. The cost of living while away from home of business
Assets
owners equity
Non-operating
Travel Expense
37. 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.
Periodic inventory method
MACRS
Accumulated Depreciation
Account
38. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.
Accumulated Depreciation
Draw (Withdrawl)
Indirect method
fiscal year
39. Contra-asset account that accumulates all the deprec of long lived assets over the years
Net
Cash Flow Statement
Transportation expense
Accumulated Depreciation
40. Modified accelerated cost recovery syste - for which IRS tables tell the rate by which to multiply an assets historical cost
Netted
creditors
MACRS
current liabilities
41. The financial report that shows business assets - liabilities - and the owners equity on a particular day
unrealized gain/loss
fiscal year
Balance sheet
Capital
42. The cost to the business of the goods that it sells
Draw (Withdrawl)
liabilities
Contra-asset account
Cost of goods sold
43. 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
current liabilities
Expenses
Sales
T-account
44. Outsders to whom the business owes money
creditors
Income Statement
Net income
Sales
45. The amount borrowed plus the interest up to a maturity date
future value of a note
Non-operating
Draw (Withdrawl)
current liabilities
46. Debts owned to people outside the company
liabilities
Chart of Accounts
Face interest
Net Income
47. The interest rate written on the face of a note
liabilities
Periodic inventory method
Non-operating
Face interest
48. The financial report that shows the result of business operations over a period of time
Income Statement
creditors
Capital
Periodic inventory method
49. The financial report that shows the result of biz operations over a period of time
Expensed
Non-operating
present value of a note
Income statement
50. Accounts that explain why assets went down from operations
Accumulated Depreciation
Face amount
Accumulated Depreciation
Expenses