Course Course Summary Section 1 Content Section 1 Content Left Section 1 Content Right Credit Type: Exam ACE ID: CLEP-0039 Organization: College Board's College-Level Examination Program (CLEP) Location: Certified CLEP testing centers throughout the U.S. Length: 1.5 hours Dates Offered: 1/1/2023 - 12/31/2027 1/1/2007 - 12/31/2022 Credit Recommendation & Competencies Section 2 Content Section 2 Content Left Section 2 Content Right Level Credits (SH) Subject Lower-Division Baccalaureate 3 Financial Accounting Credit is recommended for candidates scoring 50 and above. Description Section 3 Content Section 3 Content Left Section 3 Content Right Objective: The Financial Accounting exam covers skills and concepts that are generally taught in a first-semester undergraduate financial accounting course.The exam contains approximately 75 questions to be answered in 90 minutes.A four-function calculator is available during the exam as part of the testing software. Skills Measured: Questions on the Financial Accounting exam require test takers to demonstrate one or more of the following abilities:• Familiarity with accounting concepts and terminology• Preparation, use, and analysis of accounting data and financial reports issued for both internal and external purposes• Application of accounting techniques to simple problem situations involving computations• Understanding the rationale for generally accepted accounting principles and proceduresThe subject matter of the Financial Accounting exam is drawn from the following topics.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 businessThe 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 analysisThe 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 analysisStatement of Cash Flows (5%–10%)• Indirect method• Cash flow analysis• Operating, financing, and investing activitiesMiscellaneous (Less than 5%)• Investments• Contingent liabilities Instruction & Assessment Section 4 Content Section 4 Content Left Section 4 Content Right Supplemental Materials Section 5 Content Section 5 Content Left Section 5 Content Right Section 6 Content Section 6 Content Left Section 6 Content Right Button Content Rail Content 1 Other offerings from College Board's College-Level Examination Program (CLEP) American Government (CLEP-0007) American Literature (CLEP-0010) Analyzing and Interpreting Literature (CLEP-0011) Biology (CLEP-0018) Calculus (CLEP-0038) Chemistry (CLEP-0019) College Algebra (CLEP-0013) College Composition (CLEP-0040) College Composition Modular (CLEP-0041) College Mathematics (CLEP-0004) View All Courses Page Content