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






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






3. The official list of all business accounts






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






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






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






7. Assets that can be used to pay current liabilities






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






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






10. 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






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






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






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






14. A supply of items a business has on hand






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






16. Accounts that explain why assets went up from operations






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






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






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






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






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






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






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






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






25. Income-expenses






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






27. Assets that help a business or person make money






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






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. Outsders to whom the business owes money






31. Recorded the cost as an asset






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






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






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






35. 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.






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






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






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






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






40. Debts owned to people outside the company






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






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






43. Accounts that explain why assets went down from operations






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






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






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






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






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






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