CLEP Financial Accounting Readiness Test

10 questions, balanced across the exam's topics. Answer each one, then submit for your practice readiness estimate and per-topic breakdown. This is a practice estimate — not a prediction or guarantee of your official exam result.

Question 1

Current assets are $198000; current liabilities are $60000. What is the current ratio?

33/10 to 1 10/33 to 1 33/100 to 1 33 to 1

Question 2

Inventory consists of 100 units at $12 and 100 later units at $16. After selling 150 units, what is ending inventory under periodic weighted average?

800 dollars 2100 dollars 600 dollars 700 dollars

Question 3

A bond has face value $88000 and is issued at 105% of face. What is its initial carrying amount, ignoring issue costs?

4400 dollars 92400 dollars 83600 dollars 88000 dollars

Question 4

Net sales are $165000 and cost of goods sold is $99000. What is gross profit?

264000 dollars 99000 dollars 66000 dollars 165000 dollars

Question 5

Cash is $21000, short-term investments are $5000, net receivables are $25000, inventory is $30000, and current liabilities are $20000. What is the quick ratio? Assume no other quick assets.

51/20 to 1 81/20 to 1 23/10 to 1 21/20 to 1

Question 6

A machine costs $80000, has residual value $5800, and an estimated lifetime output of 20000 units. Current output is 3000 units. What units-of-production depreciation is recognized?

3710 dollars 11130 dollars 74200 dollars 12000 dollars

Question 7

Using the cost method, a corporation repurchases 500 of its shares for $18 each. What is the reduction in total equity at repurchase?

500 dollars 0 dollars 9000 dollars 4500 dollars

Question 8

Beginning retained earnings are $36600, net income is $16600, and declared dividends are $3400. What are ending retained earnings?

33200 dollars 56600 dollars 53200 dollars 49800 dollars

Question 9

Current assets are $114000; current liabilities are $55000. What is working capital?

59000 dollars 55000 dollars 169000 dollars 114000 dollars

Question 10

Beginning inventory is $18000, net purchases are $82000, and ending inventory is $21600. What is periodic cost of goods sold? Net purchases already include all required purchase adjustments.

78400 dollars 60400 dollars 100000 dollars 121600 dollars

Unanswered questions count as incorrect. Your answers are graded on the server; no answer key is sent to your browser.

← Back to the CLEP Financial Accounting page

About Contact Privacy Policy Terms of Service Refund Policy

Home Exams Simulations WorkTrials GameScope Account