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






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






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






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






5. A supply of items a business has on hand






6. Outsders to whom the business owes money






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






8. Debts owned to people outside the company






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






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






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






12. Accounts that explain why assets went down from operations






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






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






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






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






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






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






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






20. 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






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






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






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






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






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






26. Income - Expenses = Net Income






27. An account that gets subtracted from an asset account






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






29. Accounts that explain why assets went up from operations






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






31. 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






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






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






34. The official list of all business accounts






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






36. Assets that can be used to pay current liabilities






37. Income-expenses






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






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






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






41. 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.






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






43. Assets that help a business or person make money






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






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






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






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






48. A word that means a subtraction has occured






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






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