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Test your basic knowledge |
CLEP Financial Accounting Vocab
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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. Debts that must be paid within one year or one operating cycle - whichever is longer
Percentage Analysis
unrealized gain/loss
current liabilities
Accelerated depr method
2. The amount of the historical cost of an asset that gets allocated over the useful life of the asset
Capitalized
Income Statement
Depreciable cost
Non-operating
3. The cost of business airplane fairs - trains and long-distance buses
Capital
Accumulated Depreciation
Transportation expense
Accumulated Depreciation
4. The amount of long-lived assets used up during operations
Chart of Accounts
Expenses
Depreciation Expense
Capitalized
5. Assets that can be used to pay current liabilities
current assets
Perpetual inventory method
Depreciable cost
Assets
6. 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.
Accelerated depr method
Periodic inventory method
Accumulated Depreciation
MACRS
7. The inventory method that increases the inventory account with every purchase and lowers the inventory with every sale.
Perpetual inventory method
Weighted average
Indirect method
Sales
8. A depr method that results in higher depr exp in an assets early years
Income
Accelerated depr method
Account
Expensed
9. The dollar amount written on the face of the note
operating cycle
Face amount
Transportation expense
Travel Expense
10. Economic resources that the business plans to use in the future to make money
current assets
Cost of goods sold
Assets
Net Income
11. Money is 'expensed' if it is gone forever - if there remains no useful assert as a result of the spending. THe opposite of capitalized. `
Expensed
Indirect method
future value of a note
current assets
12. The financial report that shows the result of biz operations over a period of time
owners equity
Cash Flow Statement
Direct method
Income statement
13. The natural period of time before a certain business activities tend to repeat -usually one year
operating cycle
Cost of goods sold
Non-operating
Capitalized
14. Recorded the cost as an asset
unrealized gain/loss
Expensed
liabilities
Capitalized
15. When numbers are 'netted' they combine so that the negative numbers get subtracted from the positive numbers
Depreciable cost
Netted
Accumulated Depreciation
current liabilities
16. The financial report that shows the result of business operations over a period of time
Transportation expense
unrealized gain/loss
Income Statement
interest-bearing note
17. The inventory system that averages the cost of all items in inventory and assigns that averaged cost the the items sold.
Net
Periodic inventory method
Transportation expense
Weighted average
18. That porition of the business the owner gets to keep after paying all creditors
Travel Expense
Account
Transportation expense
owners equity
19. Assets that help a business or person make money
Capital
Net income
Account
current liabilities
20. When money is changed into another asset that helps the business make money
Capitalized
Net Income
liabilities
Assets
21. An account that gets subtracted from an asset account
Account
Contra-asset account
future value of a note
Indirect method
22. Accounts that explain why assets went down from operations
Face interest
Expenses
Depreciable cost
MACRS
23. A note with an interest rate written on the face - whose face amount is the present value
Weighted average
future value of a note
interest-bearing note
Account
24. The official list of all business accounts
Percentage Analysis
Income Statement
Expensed
Chart of Accounts
25. Money that the owner takes from the business or money in the business account that the owner spends on personal bills.
current assets
Account
Depreciation Expense
Draw (Withdrawl)
26. The amount borrowed - or the principal. Interest-bearing notes show the present value as the face amount
Weighted average
Periodic inventory method
present value of a note
Balance sheet
27. Method of journalizing and posting accounts at the same time by recording transac vertically in columns
Capital
Income
Net Income
Vertical Journal Entries
28. Accounts that explain why assets went up from operations
Indirect method
Income
Contra Account
Statement of Owners Equity
29. 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.
Capitalized
liabilities
Contra-asset account
Percentage Analysis
30. The contra-asset account that accumulates all the depreciation of long-lived assets over the years
Expenses
Depreciable cost
Accumulated Depreciation
Cash Flow Statement
31. 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
Chart of Accounts
Face interest
Cash Flow Statement
current liabilities
32. The amount borrowed plus the interest up to a maturity date
operating cycle
future value of a note
Cash Flow Statement
present value of a note
33. 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
T-account
Contra Account
Netted
Transportation expense
34. A financial statement that calculates an end-of-period balance of the owner's equity account
Expensed
Statement of Owners Equity
Perpetual inventory method
Accelerated depr method
35. Usual method - starts with NI and uses the changes in the A&L accounts to adjust NI into cash flow from operations
liabilities
Capital
Income statement
Indirect method
36. Non-operating exp or revenues come from transactions that are not part of normal biz operations
Non-operating
Face interest
Expensed
Indirect method
37. Income-expenses
Income
Net income
Cash Flow Statement
MACRS
38. The cost to the business of the goods that it sells
Cost of goods sold
Income statement
Account
MACRS
39. To sell a note to a bank that subtracts a discount - giving the seller the proceeds`
Capital
Percentage Analysis
Capitalized
Discount a note
40. The cost of living while away from home of business
Travel Expense
Inventory
Net Income
Net
41. Asset has not been sold but a gain or loss has occurred
Inventory
Net Income
unrealized gain/loss
Income statement
42. A word that means a subtraction has occured
Net
Contra-asset account
Face amount
Sales
43. Modified accelerated cost recovery syste - for which IRS tables tell the rate by which to multiply an assets historical cost
Accumulated Depreciation
Depreciable cost
interest-bearing note
MACRS
44. A place on the financial books to keep track of financial info that the owners want to know
Cost of goods sold
Statement of Owners Equity
Account
owners equity
45. An account that gets subtracted from its related account. Contra accounts always get reported as negative numbers.
Contra Account
Accelerated depr method
Depreciation Expense
Vertical Journal Entries
46. The financial report that shows business assets - liabilities - and the owners equity on a particular day
Statement of Owners Equity
Face amount
Balance sheet
Periodic inventory method
47. The 12 month period a business used to report the results of its operatons
current liabilities
fiscal year
Income Statement
liabilities
48. The interest rate written on the face of a note
Face interest
Depreciation Expense
Chart of Accounts
fiscal year
49. Money is 'expensed' if it is gone forever - if there remains no useful asset as a result of the spending. The opposite is CAPITALIZED
Expensed
Net
Statement of Owners Equity
Income Statement
50. An income account that explains the increase in business assets as a result of selling goods
Sales
Perpetual inventory method
operating cycle
Inventory