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CLEP cheat sheet

CLEP Financial Accounting cheat sheet

A condensed reference for the formulas, graph-reading rules, and must-know facts most worth reviewing before exam day.

Core rules

  • Accounting equation: Assets = Liabilities + Owners' Equity.
  • Debits increase assets and expenses; credits increase liabilities, equity, and revenue.
  • The cycle: journalize → post → trial balance → adjust → statements → close.

The statements

  • Income statement: Revenue - Expenses = Net Income.
  • Balance sheet: a snapshot of assets, liabilities, and equity at a point in time.
  • Accrual basis: recognize revenue when earned and expenses when incurred (not when cash moves).

Practice this first: The accounting cycle — Journal entries, ledgers, and the trial balance are the mechanical foundation.

Now put it to work — practice CLEP Financial Accounting free

Reviewing the sheet is step one. Passers are usually hitting about 70-80% on realistic practice before test day (CLEP costs about $93, with a 3-month retake lockout on a miss), so the fastest way to know you are ready is to start answering real questions.