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






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






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






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






5. Income - Expenses = Net Income






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






7. A supply of items a business has on hand






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






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






10. Income-expenses






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






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






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






14. Recorded the cost as an asset






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






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






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






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






19. Accounts that explain why assets went up from operations






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






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






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






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






24. Assets that help a business or person make money






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






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






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






28. Assets that can be used to pay current liabilities






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






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






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






32. Debts owned to people outside the company






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






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






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






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






37. Outsders to whom the business owes money






38. 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.






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






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. 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






42. 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.






43. An account that gets subtracted from an asset account






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






45. A word that means a subtraction has occured






46. Accounts that explain why assets went down from operations






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






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






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






50. The official list of all business accounts







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