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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. 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






2. Income-expenses






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






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






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






6. Assets that help a business or person make money






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






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






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






10. 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.






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






12. Debts owned to people outside the company






13. Accounts that explain why assets went up from operations






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






15. Accounts that explain why assets went down from operations






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






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






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






19. The official list of all business accounts






20. Outsders to whom the business owes money






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






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






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






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






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






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






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






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






29. Income - Expenses = Net Income






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






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






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






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






34. 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.






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






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






37. Assets that can be used to pay current liabilities






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






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






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






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






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






43. Recorded the cost as an asset






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






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






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






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






48. A word that means a subtraction has occured






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






50. A supply of items a business has on hand







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