SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
CLEP Financial Accounting Vocab
Start Test
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 depr method that results in higher depr exp in an assets early years
Accelerated depr method
Depreciable cost
current liabilities
Inventory
2. 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
Expenses
Contra-asset account
Draw (Withdrawl)
T-account
3. Debts that must be paid within one year or one operating cycle - whichever is longer
present value of a note
current liabilities
Travel Expense
Percentage Analysis
4. The amount of the historical cost of an asset that gets allocated over the useful life of the asset
Non-operating
Expenses
Depreciable cost
future value of a note
5. Outsders to whom the business owes money
Chart of Accounts
Capitalized
creditors
Vertical Journal Entries
6. The contra-asset account that accumulates all the depreciation of long-lived assets over the years
Accumulated Depreciation
current assets
Chart of Accounts
T-account
7. The inventory method that increases the inventory account with every purchase and lowers the inventory with every sale.
Cash Flow Statement
Perpetual inventory method
Balance sheet
operating cycle
8. A place on the financial books to keep track of financial info that the owners want to know
Cost of goods sold
Account
fiscal year
Expenses
9. A supply of items a business has on hand
Inventory
unrealized gain/loss
Face interest
Periodic inventory method
10. Asset has not been sold but a gain or loss has occurred
owners equity
unrealized gain/loss
operating cycle
Net
11. A financial statement that calculates an end-of-period balance of the owner's equity account
creditors
Statement of Owners Equity
Transportation expense
Accumulated Depreciation
12. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers
Account
operating cycle
Cost of goods sold
Netted
13. The interest rate written on the face of a note
Weighted average
Accumulated Depreciation
Contra-asset account
Face interest
14. Debts owned to people outside the company
Expensed
Net Income
current liabilities
liabilities
15. The official list of all business accounts
Periodic inventory method
MACRS
Accumulated Depreciation
Chart of Accounts
16. A word that means a subtraction has occured
Contra-asset account
Capital
Net
Depreciable cost
17. Assets that can be used to pay current liabilities
Capital
current assets
Statement of Owners Equity
Income statement
18. Modified accelerated cost recovery syste - for which IRS tables tell the rate by which to multiply an assets historical cost
MACRS
Accelerated depr method
Contra-asset account
Statement of Owners Equity
19. The cost of living while away from home of business
Indirect method
Travel Expense
unrealized gain/loss
Net
20. Income-expenses
Net income
Transportation expense
Depreciation Expense
Non-operating
21. Contra-asset account that accumulates all the deprec of long lived assets over the years
interest-bearing note
Accumulated Depreciation
Periodic inventory method
Cost of goods sold
22. The amount of long-lived assets used up during operations
Depreciation Expense
Contra Account
Direct method
Inventory
23. The cost the the biz of the goods it sells
Discount a note
Direct method
Cost of goods sold
Net Income
24. When money is changed into another asset that helps the business make money
Face amount
Accelerated depr method
Chart of Accounts
Capitalized
25. The cost to the business of the goods that it sells
Netted
Cost of goods sold
liabilities
Contra Account
26. That porition of the business the owner gets to keep after paying all creditors
Inventory
Capital
owners equity
Contra-asset account
27. The dollar amount written on the face of the note
Face amount
liabilities
Accumulated Depreciation
Cash Flow Statement
28. Accounts that explain why assets went up from operations
owners equity
unrealized gain/loss
current assets
Income
29. The 12 month period a business used to report the results of its operatons
fiscal year
Cost of goods sold
Expenses
interest-bearing note
30. Economic resources that the business plans to use in the future to make money
future value of a note
Sales
Assets
Net Income
31. The financial report that shows business assets - liabilities - and the owners equity on a particular day
Assets
Balance sheet
present value of a note
Percentage Analysis
32. The financial report that shows the result of business operations over a period of time
Net Income
Income Statement
Contra Account
MACRS
33. The amount borrowed - or the principal. Interest-bearing notes show the present value as the face amount
current assets
Discount a note
present value of a note
liabilities
34. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.
Draw (Withdrawl)
T-account
Percentage Analysis
Income statement
35. The natural period of time before a certain business activities tend to repeat -usually one year
Contra-asset account
future value of a note
operating cycle
fiscal year
36. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `
liabilities
Face interest
Statement of Owners Equity
Direct method
37. An income account that explains the increase in business assets as a result of selling goods
Travel Expense
Net
Discount a note
Sales
38. Non-operating exp or revenues come from transactions that are not part of normal biz operations
Account
current assets
T-account
Non-operating
39. 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.
Percentage Analysis
interest-bearing note
Income
future value of a note
40. The financial report that shows the result of biz operations over a period of time
Sales
interest-bearing note
Income statement
Balance sheet
41. Method of journalizing and posting accounts at the same time by recording transac vertically in columns
Vertical Journal Entries
Chart of Accounts
Capital
Net income
42. The cost of business airplane fairs - trains and long-distance buses
Perpetual inventory method
Transportation expense
Cost of goods sold
Chart of Accounts
43. Recorded the cost as an asset
Capitalized
Expenses
Contra Account
Face interest
44. The amount borrowed plus the interest up to a maturity date
interest-bearing note
Expensed
unrealized gain/loss
future value of a note
45. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.
Accumulated Depreciation
Capitalized
Contra Account
Face interest
46. 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
Face amount
present value of a note
Chart of Accounts
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. `
interest-bearing note
Net income
Expenses
Expensed
48. Income - Expenses = Net Income
Expensed
Net Income
Income Statement
T-account
49. The inventory system that averages the cost of all items in inventory and assigns that averaged cost the the items sold.
future value of a note
Weighted average
owners equity
Accumulated Depreciation
50. Usual method - starts with NI and uses the changes in the A&L accounts to adjust NI into cash flow from operations
Perpetual inventory method
Indirect method
Expenses
Accelerated depr method