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Test your basic knowledge |
CLEP Financial Accounting Vocab
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Study First
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. A word that means a subtraction has occured
Net
Income Statement
Chart of Accounts
Cash Flow Statement
2. Accounts that explain why assets went down from operations
Discount a note
Chart of Accounts
Expenses
Draw (Withdrawl)
3. A note with an interest rate written on the face - whose face amount is the present value
interest-bearing note
Vertical Journal Entries
current liabilities
Direct method
4. Contra-asset account that accumulates all the deprec of long lived assets over the years
Net
Capital
fiscal year
Accumulated Depreciation
5. Asset has not been sold but a gain or loss has occurred
Transportation expense
unrealized gain/loss
Accumulated Depreciation
interest-bearing note
6. An income account that explains the increase in business assets as a result of selling goods
Transportation expense
Travel Expense
Expensed
Sales
7. Income - Expenses = Net Income
Face amount
liabilities
Net Income
Expenses
8. Non-operating exp or revenues come from transactions that are not part of normal biz operations
Perpetual inventory method
Expensed
Non-operating
Cash Flow Statement
9. A place on the financial books to keep track of financial info that the owners want to know
owners equity
Account
Capitalized
creditors
10. That porition of the business the owner gets to keep after paying all creditors
Statement of Owners Equity
owners equity
Weighted average
Cost of goods sold
11. Method of journalizing and posting accounts at the same time by recording transac vertically in columns
Periodic inventory method
Travel Expense
Income Statement
Vertical Journal Entries
12. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.
Capital
MACRS
Contra Account
Balance sheet
13. Recorded the cost as an asset
Net Income
Net income
Balance sheet
Capitalized
14. The cost of living while away from home of business
Travel Expense
future value of a note
Sales
Cost of goods sold
15. The cost to the business of the goods that it sells
Cost of goods sold
Statement of Owners Equity
Expensed
Capitalized
16. Modified accelerated cost recovery syste - for which IRS tables tell the rate by which to multiply an assets historical cost
Contra-asset account
MACRS
Direct method
Income statement
17. 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
Cash Flow Statement
Perpetual inventory method
Cost of goods sold
fiscal year
18. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.
Draw (Withdrawl)
Cost of goods sold
Capitalized
Accumulated Depreciation
19. The financial report that shows business assets - liabilities - and the owners equity on a particular day
Balance sheet
Capitalized
interest-bearing note
Net Income
20. The interest rate written on the face of a note
Face interest
Depreciation Expense
Accumulated Depreciation
owners equity
21. Economic resources that the business plans to use in the future to make money
interest-bearing note
Cost of goods sold
Assets
Netted
22. Accounts that explain why assets went up from operations
fiscal year
Assets
Accelerated depr method
Income
23. The official list of all business accounts
Expenses
Net income
Inventory
Chart of Accounts
24. The amount borrowed plus the interest up to a maturity date
Assets
Draw (Withdrawl)
future value of a note
Non-operating
25. When money is changed into another asset that helps the business make money
Periodic inventory method
unrealized gain/loss
Indirect method
Capitalized
26. The dollar amount written on the face of the note
Face amount
Cost of goods sold
Depreciable cost
MACRS
27. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers
Perpetual inventory method
Depreciation Expense
Netted
Income Statement
28. A depr method that results in higher depr exp in an assets early years
current assets
Accelerated depr method
Direct method
Income
29. Assets that help a business or person make money
Percentage Analysis
Face interest
Capital
Contra Account
30. The natural period of time before a certain business activities tend to repeat -usually one year
current liabilities
operating cycle
Depreciation Expense
Income
31. An account that gets subtracted from an asset account
Contra-asset account
interest-bearing note
Chart of Accounts
Inventory
32. Income-expenses
Depreciable cost
operating cycle
Expenses
Net income
33. The 12 month period a business used to report the results of its operatons
Sales
owners equity
MACRS
fiscal year
34. Money is 'expensed' if it is gone forever - if there remains no useful assert as a result of the spending. THe opposite of capitalized. `
Draw (Withdrawl)
Account
Expensed
Percentage Analysis
35. The inventory method that increases the inventory account with every purchase and lowers the inventory with every sale.
Accelerated depr method
Perpetual inventory method
Accumulated Depreciation
Inventory
36. The amount of long-lived assets used up during operations
Inventory
Depreciation Expense
unrealized gain/loss
Accelerated depr method
37. Outsders to whom the business owes money
Travel Expense
Perpetual inventory method
Net Income
creditors
38. 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
Income statement
T-account
operating cycle
owners equity
39. A supply of items a business has on hand
creditors
Inventory
Depreciation Expense
Accelerated depr method
40. Debts that must be paid within one year or one operating cycle - whichever is longer
current liabilities
Expenses
Statement of Owners Equity
Discount a note
41. 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.
Depreciable cost
Periodic inventory method
Draw (Withdrawl)
Face interest
42. The amount of the historical cost of an asset that gets allocated over the useful life of the asset
Net Income
Inventory
Draw (Withdrawl)
Depreciable cost
43. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `
current liabilities
unrealized gain/loss
Direct method
fiscal year
44. The financial report that shows the result of business operations over a period of time
Expensed
Face amount
Income Statement
Accumulated Depreciation
45. The inventory system that averages the cost of all items in inventory and assigns that averaged cost the the items sold.
Accelerated depr method
Weighted average
Transportation expense
unrealized gain/loss
46. A financial statement that calculates an end-of-period balance of the owner's equity account
Weighted average
Account
Statement of Owners Equity
Draw (Withdrawl)
47. The cost the the biz of the goods it sells
future value of a note
Face amount
Cost of goods sold
Face interest
48. The cost of business airplane fairs - trains and long-distance buses
liabilities
unrealized gain/loss
Transportation expense
Cash Flow Statement
49. The financial report that shows the result of biz operations over a period of time
Accelerated depr method
Capital
Income statement
Draw (Withdrawl)
50. Money is 'expensed' if it is gone forever - if there remains no useful asset as a result of the spending. The opposite is CAPITALIZED
Cash Flow Statement
Expensed
unrealized gain/loss
Chart of Accounts