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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. A word that means a subtraction has occured






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






3. Accounts that explain why assets went down from operations






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






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






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






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






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






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






10. Income-expenses






11. 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






12. Assets that can be used to pay current liabilities






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






14. An account that gets subtracted from an asset account






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






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






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






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






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






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






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






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






23. Outsders to whom the business owes money






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






25. 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.






26. 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






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






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






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






30. Income - Expenses = Net Income






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






32. A supply of items a business has on hand






33. The official list of all business accounts






34. Debts owned to people outside the company






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






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






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






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






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






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






41. Assets that help a business or person make money






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






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






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






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






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






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






48. Accounts that explain why assets went up from operations






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






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