The Financial Accounting CLEP 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.
Knowledge and Skills Required
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 procedures
The subject matter of the Financial Accounting exam is drawn from the following topics. The percentages next to the main topics indicate the approximate percentage of exam questions on that topic.
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
- 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
Less than (5%) Miscellaneous
- Contingent liabilities
User Test Results for the Financial Accounting CLEP Exam
156 users have submitted their test results to us since March 2016
149 (95.5%) of those users have reported an ACE recommended passing score
The table below represents our users most recent test results for the Financial Accounting CLEP exam after using Credits4Less.
Note: The date shown below represents the date that they reported their score to us.
|Feb 21, 2018||Pass||57|
|Feb 17, 2018||Pass||76|
|Feb 14, 2018||Pass||67|
|Feb 4, 2018||Pass||75|
|Jan 31, 2018||Pass||59|
Our Study Guide
Credits4Less’ Financial Accounting study guide will leave you fully prepared to pass yourFinancial Accounting CLEP exam. Our study guide is broken down to match the exact make up of the actual CLEP exam with each unit containing a set of cheat sheet notes and dozens of practice questions.