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






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






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






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






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






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






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






9. 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.






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






11. Income-expenses






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. Accounts that explain why assets went up from operations






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






15. Assets that help a business or person make money






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






17. Recorded the cost as an asset






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






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






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






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






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






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






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






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






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






27. A word that means a subtraction has occured






28. Assets that can be used to pay current liabilities






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






30. Income - Expenses = Net Income






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






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






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






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






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






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






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






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






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






40. 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






41. Outsders to whom the business owes money






42. The official list of all business accounts






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






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






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






46. Debts owned to people outside the company






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






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






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






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