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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. Accounts that explain why assets went down from operations






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






3. Assets that help a business or person make money






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






5. Accounts that explain why assets went up from operations






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






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






8. Income-expenses






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






10. Recorded the cost as an asset






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






12. Money is 'expensed' if it is gone forever - if there remains no useful asset as a result of the spending. The opposite is CAPITALIZED






13. Debts owned to people outside the company






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






15. 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






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






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






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






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






20. An account that gets subtracted from an asset account






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






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






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






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






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






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






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






28. 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.






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






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






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






32. Assets that can be used to pay current liabilities






33. The official list of all business accounts






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






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






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






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. A supply of items a business has on hand






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






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






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






42. Outsders to whom the business owes money






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






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






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






46. A word that means a subtraction has occured






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






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






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






50. 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






Can you answer 50 questions in 15 minutes?



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