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