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






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






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






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






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






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






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






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






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






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






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






12. 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






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






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






15. A word that means a subtraction has occured






16. Recorded the cost as an asset






17. 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.






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






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






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






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






22. Accounts that explain why assets went up from operations






23. Accounts that explain why assets went down from operations






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






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






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






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






28. An account that gets subtracted from an asset account






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






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






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






32. Income - Expenses = Net Income






33. Income-expenses






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






35. The official list of all business accounts






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






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






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






39. Debts owned to people outside the company






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






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






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






43. Assets that can be used to pay current liabilities






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






45. 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






46. Outsders to whom the business owes money






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






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






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






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