Exam content for CLEP Financial Accounting exam, which covers the basics of introductory financial accounting course: General Topics (20%–30%) Generally accepted accounting principles Rules of double-entry accounting/transaction analysis/accounting equation The accounting cycle Business ethics Purpose of, presentation of, and relationships between financial statements Forms of business The Income Statement (20%–30%) Presentation format issues Recognition of revenue and expenses Cost of goods sold Irregular items (e.g., discontinued operations, extraordinary items,... Show more Exam content for CLEP Financial Accounting exam, which covers the basics of introductory financial accounting course: General Topics (20%–30%) Generally accepted accounting principles Rules of double-entry accounting/transaction analysis/accounting equation The accounting cycle Business ethics Purpose of, presentation of, and relationships between financial statements Forms of business The Income Statement (20%–30%) Presentation format issues Recognition of revenue and expenses Cost of goods sold Irregular items (e.g., discontinued operations, extraordinary items, etc.) Profitability analysis The Balance Sheet (30%–40%) Cash and internal controls Valuation of accounts and notes receivable (including bad debts) Valuation of inventories Acquisition and disposal of long-term assets Depreciation/amortization/depletion Intangible assets (e.g., patents, goodwill, etc.) Accounts and notes payable Long-term liabilities (e.g., bonds payable) Owner's equity Preferred and common stock Retained earnings Liquidity, solvency, and activity analysis Statement of Cash Flows (5%–10%) Indirect method Cash flow analysis Operating, financing, and investing activities Miscellaneous (Less than 5%) Investments Contingent liabilities Related test: CLEP Financial Accounting Exam Practice Test 1 Show less
Exam content for CLEP Financial Accounting exam, which covers the basics of introductory financial accounting course:
General Topics (20%–30%) Generally accepted accounting principles Rules of double-entry accounting/transaction analysis/accounting equation The accounting cycle Business ethics Purpose of, presentation of, and relationships between financial statements Forms of business
The Income Statement (20%–30%) Presentation format issues Recognition of revenue and expenses Cost of goods sold Irregular items (e.g., discontinued operations, extraordinary items, etc.) Profitability analysis
The Balance Sheet (30%–40%) Cash and internal controls Valuation of accounts and notes receivable (including bad debts) Valuation of inventories Acquisition and disposal of long-term assets Depreciation/amortization/depletion Intangible assets (e.g., patents, goodwill, etc.) Accounts and notes payable Long-term liabilities (e.g., bonds payable) Owner's equity Preferred and common stock Retained earnings Liquidity, solvency, and activity analysis
Statement of Cash Flows (5%–10%) Indirect method Cash flow analysis Operating, financing, and investing activities
Miscellaneous (Less than 5%) Investments Contingent liabilities
Related test: CLEP Financial Accounting Exam Practice Test 1
Join 4M+ learners. Unlock unlimited quizzes, wrong-answer tracking, flashcards + reminders, study guides, and 1-on-1 challenges.