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