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