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






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






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






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






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






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






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






8. Recorded the cost as an asset






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






10. The official list of all business accounts






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






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






13. Outsders to whom the business owes money






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






15. Assets that help a business or person make money






16. Debts owned to people outside the company






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






18. Income-expenses






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






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






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






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






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






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






25. 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






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






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






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






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






30. 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.






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






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






33. A word that means a subtraction has occured






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






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






36. 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.






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






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






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






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






41. Assets that can be used to pay current liabilities






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






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






44. A supply of items a business has on hand






45. Accounts that explain why assets went up from operations






46. Income - Expenses = Net Income






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






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






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






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