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






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






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






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






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






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






7. Accounts that explain why assets went up from operations






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






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






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






11. An account that gets subtracted from an asset account






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






13. Assets that can be used to pay current liabilities






14. Assets that help a business or person make money






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






16. Income - Expenses = Net Income






17. The official list of all business accounts






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






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






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






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






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






23. Debts owned to people outside the company






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






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






26. Income-expenses






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






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






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






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






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






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






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






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






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






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






37. 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






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






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






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






41. 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.






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






43. A word that means a subtraction has occured






44. 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






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






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






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






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






49. Recorded the cost as an asset






50. A supply of items a business has on hand