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






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






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






4. Debts owned to people outside the company






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






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






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






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






9. Accounts that explain why assets went down from operations






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






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






12. The official list of all business accounts






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






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






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






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






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






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






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






20. Recorded the cost as an asset






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






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






23. A supply of items a business has on hand






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






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






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






27. 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






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






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






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






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






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






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






34. Outsders to whom the business owes money






35. Income - Expenses = Net Income






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






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






38. Assets that help a business or person make money






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. Accounts that explain why assets went up from operations






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






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






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






45. An account that gets subtracted from an asset account






46. 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.






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






48. Income-expenses






49. Assets that can be used to pay current liabilities






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