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






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






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






4. 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






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






6. A supply of items a business has on hand






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






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






9. 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






10. Assets that help a business or person make money






11. Debts owned to people outside the company






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






13. Recorded the cost as an asset






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






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






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






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






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






19. Accounts that explain why assets went up from operations






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






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






22. Income - Expenses = Net Income






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






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






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






26. Assets that can be used to pay current liabilities






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






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






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






30. An account that gets subtracted from an asset account






31. The official list of all business accounts






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






33. A word that means a subtraction has occured






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






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






36. Outsders to whom the business owes money






37. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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