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






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






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






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






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






6. Assets that can be used to pay current liabilities






7. Assets that help a business or person make money






8. 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.






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






10. A supply of items a business has on hand






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






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






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






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






15. A word that means a subtraction has occured






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






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






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






19. Debts owned to people outside the company






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






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






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






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






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






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






26. Accounts that explain why assets went down from operations






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






28. The official list of all business accounts






29. 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






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






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






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






33. Accounts that explain why assets went up from operations






34. Income-expenses






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






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






37. 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






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






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






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






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






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






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






44. An account that gets subtracted from an asset account






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






46. Income - Expenses = Net Income






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






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






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






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