Financial Accounting CLEP Test questions with || || || || || ||
accurate detailed solutions || ||
Accountants record expenses in the same time period in which they occurred. This is called:
|| || || || || || || || || || || || || ||
The matching Principle
|| ||
The committee on Accounting procedure was part of which organization?
|| || || || || || || || ||
The american institute of accountants (AIA)
|| || || || ||
Where will you find the total amount that is owed to your business by customers?
|| || || || || || || || || || || || || ||
under accounts receivable on the balance sheet
|| || || || || ||
which type of external user would most commonly use audited financial statements?
|| || || || || || || || || || ||
Investors
Who investigated arthur anderson and enron?
|| || || || ||
SEC (securities and exchange commission)
|| || || ||
Which of the following is an example of how publicly-traded companies can apply the principle
|| || || || || || || || || || || || || || ||
of conservatism with their financial statements
|| || || || ||
Recognizing accounts payable immediately on the financial statements
|| || || || || || ||
,how is a cash flow statement different from an income statement
|| || || || || || || || || ||
a cash flow statement shows actual cash received and expended. income statements show all
|| || || || || || || || || || || || || ||
revenue and expense. || ||
which of the following would be a cash outflow operating activity for a small healthcare
|| || || || || || || || || || || || || || ||
manufacturer
cost of raw materials || || ||
your plumbing company fixed the shower for jane smith. you have invoiced jane for $1000 but
|| || || || || || || || || || || || || || || ||
she has not paid yet. Using the cash method of accounting, how much should you show as income
|| || || || || || || || || || || || || || || || ||
$0
the net income is derived from which pieces of information ?
|| || || || || || || || || ||
revenue and expense || ||
where would an investor find info about the total revenue and expenses of a company
|| || || || || || || || || || || || || ||
the income statement
|| ||
what is the statement of cash flows || || || || || ||
it is the statement that explains any changes in the cash balance of a company during an
|| || || || || || || || || || || || || || || || ||
accounting period ||
, identify the person that reviews the audit report of a company to see if the company is being
|| || || || || || || || || || || || || || || || || ||
compliant with the law || || ||
regulator
what are events that occurred after the date on the balance sheet but before the financial
|| || || || || || || || || || || || || || || ||
statements have been issued called? || || || ||
subsequent events ||
the chart of accounts of accounts are broken down into how many types of accounts
|| || || || || || || || || || || || || ||
5
the ___ ledgers contains information on all the accounts
|| || || || || || || ||
General ledger ||
which of the following accounts has balance increased when it is debited and balance decreases
|| || || || || || || || || || || || || || ||
when it is credited?
|| || ||
expense account ||
______ states that for every one transaction that occurs at least two accounts will be affected
|| || || || || || || || || || || || || || ||
double entry accounting || ||
accurate detailed solutions || ||
Accountants record expenses in the same time period in which they occurred. This is called:
|| || || || || || || || || || || || || ||
The matching Principle
|| ||
The committee on Accounting procedure was part of which organization?
|| || || || || || || || ||
The american institute of accountants (AIA)
|| || || || ||
Where will you find the total amount that is owed to your business by customers?
|| || || || || || || || || || || || || ||
under accounts receivable on the balance sheet
|| || || || || ||
which type of external user would most commonly use audited financial statements?
|| || || || || || || || || || ||
Investors
Who investigated arthur anderson and enron?
|| || || || ||
SEC (securities and exchange commission)
|| || || ||
Which of the following is an example of how publicly-traded companies can apply the principle
|| || || || || || || || || || || || || || ||
of conservatism with their financial statements
|| || || || ||
Recognizing accounts payable immediately on the financial statements
|| || || || || || ||
,how is a cash flow statement different from an income statement
|| || || || || || || || || ||
a cash flow statement shows actual cash received and expended. income statements show all
|| || || || || || || || || || || || || ||
revenue and expense. || ||
which of the following would be a cash outflow operating activity for a small healthcare
|| || || || || || || || || || || || || || ||
manufacturer
cost of raw materials || || ||
your plumbing company fixed the shower for jane smith. you have invoiced jane for $1000 but
|| || || || || || || || || || || || || || || ||
she has not paid yet. Using the cash method of accounting, how much should you show as income
|| || || || || || || || || || || || || || || || ||
$0
the net income is derived from which pieces of information ?
|| || || || || || || || || ||
revenue and expense || ||
where would an investor find info about the total revenue and expenses of a company
|| || || || || || || || || || || || || ||
the income statement
|| ||
what is the statement of cash flows || || || || || ||
it is the statement that explains any changes in the cash balance of a company during an
|| || || || || || || || || || || || || || || || ||
accounting period ||
, identify the person that reviews the audit report of a company to see if the company is being
|| || || || || || || || || || || || || || || || || ||
compliant with the law || || ||
regulator
what are events that occurred after the date on the balance sheet but before the financial
|| || || || || || || || || || || || || || || ||
statements have been issued called? || || || ||
subsequent events ||
the chart of accounts of accounts are broken down into how many types of accounts
|| || || || || || || || || || || || || ||
5
the ___ ledgers contains information on all the accounts
|| || || || || || || ||
General ledger ||
which of the following accounts has balance increased when it is debited and balance decreases
|| || || || || || || || || || || || || || ||
when it is credited?
|| || ||
expense account ||
______ states that for every one transaction that occurs at least two accounts will be affected
|| || || || || || || || || || || || || || ||
double entry accounting || ||
