CLEP Financial Accounting case studies
CLEP Financial Accounting · Put your knowledge to work in context.
The CLEP Financial Accounting exam is a standardized, multiple-choice credit-by-examination test that assesses the skills and concepts generally taught in a first-semester undergraduate financial accounting course. It is intended for students who have already acquired introductory accounting knowledge-through coursework, self-study, or work experience-and want to demonstrate that mastery to earn college credit rather than repeat the course. The CLEP Financial Accounting case studies are 5 cases and about 2,180 words.
1The Vanishing Deposit: Timing vs. Error
On June 30, Ridgeway Supply Co. receives its bank statement.
402 words, about 2 min2Revenue Recognition on a Layaway-Style Sale
Halbrook Furniture sells a 4,800 dining set to a customer on a "hold" plan on December 20. The customer pays 1,200 down and signs an agreement to pay the remaining 3,600 in six monthly installments.
459 words, about 2 min3Classifying a Note That Matures in Eleven Months
Cedarline Manufacturing is preparing its December 31 balance sheet. Among its obligations: (1) a 500,000 bank loan due March 1 of next year - Cedarline has a signed, irrevocable agreement dated December 15 to refinance the entire amount on a long-term basis; (2) a 200,000 note due next November that Cedarline intends to pay from a sinking fund it has been building; (3) a 150,000 note due in 14 months; and (4) 90,000 of accounts payable due in 45 days.
453 words, about 2 min4Indirect Cash Flow: Why Net Income Is Not Cash
Norwick Traders reports net income of 210,000 for the year. Additional data: depreciation expense 48,000; a gain of 15,000 on the sale of equipment; accounts receivable increased 30,000; inventory decreased 22,000; accounts payable decreased 18,000; and accrued liabilities increased 9,000.
450 words, about 2 min5Inventory Costing Choice Under Rising Prices
Marlow Outfitters began the year with 100 units at 20 each. During the year it purchased 200 units at 24 and 200 units at 28, then sold 350 units at a 50 selling price.
416 words, about 2 min