Test your basic knowledge |

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






3. 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.






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






5. A word that means a subtraction has occured






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






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






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






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






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






11. Debts owned to people outside the company






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






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






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






15. An account that gets subtracted from an asset account






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






17. 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






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






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






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






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






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






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






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






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






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






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






28. Outsders to whom the business owes money






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






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






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






32. Assets that can be used to pay current liabilities






33. Assets that help a business or person make money






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






35. Recorded the cost as an asset






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






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






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






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






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






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






42. Income-expenses






43. The official list of all business accounts






44. Accounts that explain why assets went down from operations






45. Accounts that explain why assets went up from operations






46. A supply of items a business has on hand






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






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






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






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