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Financial Accounting

The following sample questions do not appear on an actual CLEP examination. They are intended to give potential test-takers an indication of the format and difficulty level of the examination and provide content for practice and review. For more sample questions and information about the test, see the CLEP Official Study Guide.

Question 2 of 7

Which of the following affects both the balance sheet and the income statement?

  • A.

    Purchase of inventory

  • B.

    Retirement of a fully depreciated machine

  • C.

    Collection of accounts receivable

  • D.

    Amortization of prepaid insurance

  • E.

    Declaration of a cash dividend

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