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






2. Assets that help a business or person make money






3. 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.






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






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






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






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






8. 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






9. A supply of items a business has on hand






10. 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






11. Outsders to whom the business owes money






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






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






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






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






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






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






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






20. 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.






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






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






23. Debts owned to people outside the company






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






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






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






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






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






29. Calc cash flow from opeations that does not start with NI - but does show cash-in cash-out cat. `






30. Accounts that explain why assets went down from operations






31. The official list of all business accounts






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






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






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






35. A word that means a subtraction has occured






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






37. Income-expenses






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






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






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






41. An account that gets subtracted from an asset account






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






43. Recorded the cost as an asset






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






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






46. Assets that can be used to pay current liabilities






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






48. Income - Expenses = Net Income






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






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







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