Financial Accounting
-CLEP* Test
Financial Accounting CLEP Test
Version 2
The CLEP (College Level Examination Program) exams above
contain 419 multiple-choice practice test questions with study guides (detailed explanations).
The ACE (American Council on Education) recommends 3 lower level college
credits for this exam.
Studying, and passing, the practice tests above will allow you to
confidently take and pass your Financial Accounting Clep test. The overall key
concepts, and specific individual points, that will allow you to pass your test
are within the practice questions and detailed explanations.
Course Information and Overview
This exam covers material that is typically taught in a semester-length
introductory-level college course. The multiple-choice CLEP exam consists of 75
questions and allows 90 minutes to complete.
In order to successfully complete this Clep exam you will need to be familiar
with financial accounting concepts and terminology, understanding of financial
reports including analysis and preparation, application of accounting
techniques, and generally accepted accounting practices (GAAP).
The Financial Accounting CLEP contains questions that come from the following
topics:
- General Topics (20-30%)
Generally Accepted Accounting Principles (GAAP)
Double-entry accounting
Accounting cycles
Financial statements and their purposes and relationships
Ethics in business
Business forms
- The Income Statement (20-30%)
Issues of presentation formats
Revenues v. expenses
Cost of goods sold (COGS)
Analysis of profitability
P&L statements
- The Balance Sheet (30-40%)
Implemented controls
Cash
Inventory values and valuation
Asset acquisition
Depreciation
Other assets including intangible assets
Accounts payable A/P
Liabilities
Owners' equity
Stock
Retained earnings
- Statement of Cash Flows (5-10%)
Analysis of cash flows
Operating and financing activities
- Miscellaneous (<5%)
Assets and liabilities
Understngins investments
Stocks and bonds
Complete information of what is covered is available at
The College Board.