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






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






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






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






5. 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






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






7. A word that means a subtraction has occured






8. Accounts that explain why assets went up from operations






9. Outsders to whom the business owes money






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






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






12. 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.






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






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






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






16. Income - Expenses = Net Income






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






18. Accounts that explain why assets went down from operations






19. Income-expenses






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






21. Debts owned to people outside the company






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






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






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






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






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






27. Assets that can be used to pay current liabilities






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






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






30. A supply of items a business has on hand






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






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






33. Recorded the cost as an asset






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






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






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






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






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






39. Assets that help a business or person make money






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






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






42. The official list of all business accounts






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






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






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






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






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






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






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






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