Test your basic knowledge |

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. Assets that can be used to pay current liabilities






2. An account that gets subtracted from an asset account






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






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






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






6. The official list of all business accounts






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






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






9. A word that means a subtraction has occured






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






11. Recorded the cost as an asset






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






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






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






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






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






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






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






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






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






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






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






24. Income - Expenses = Net Income






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






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






27. Assets that help a business or person make money






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. 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 up from operations






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






32. Income-expenses






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






34. A supply of items a business has on hand






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






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






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






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






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






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






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






43. 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






44. Outsders to whom the business owes money






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






46. Debts owned to people outside the company






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






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






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






50. Accounts that explain why assets went down from operations