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Test your basic knowledge |
DSST Principles Of Finance
Start Test
Study First
Subjects
:
dsst
,
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. The money left over when income exceeds expenditure.
Accounting
Pro Forma Financial Statement
SMART Goal
Surplus
2. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Ethics
Sole Propietorship
Sole Proprietorship
Intangible assets
3. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.
Recordkeeping
Net Income
Money Market Account
International Financial Reporting Standards
4. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Stockholders
Accounting Cycle
Monetary Unit Assumption
Bookkeeping
5. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Present Value
Cash Basis Accounting
Net Income
Deficit
6. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb
Matching Principle
NASDAQ
Closing process
Profit Margin
7. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Long Term Investments
Debit
Ethics
Prepaid Expenses
8. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Stock
Deficit
Preferred Stock
Money Market Account
9. List of accounts and balances prepared before accounting adjustments are recorded and posted.
SMART Goal
IRA (Individual Retirement Account)
Matching Principle
Unadjusted Trial Balance
10. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Journalizing
Sole Proprietorship
Risk Tolerance
Materiality Constraint
11. Expenses that remain the same regardless of the circumstances.
Common Stock
Fixed Expense
Secured Loan
Bonds
12. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
NYSE (New York Stock Exchange)
Bonds
Generally Accepted Accounting Principles
Accounting
13. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.
Chart of Accounts
Closing Entries
Reversing Entries
Book Value
14. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Working Papers
Unsecured Loan
Events
Acquisition
15. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Monetary Unit Assumption
Temporary Accounts
Permanent Accounts
Sole Proprietorship
16. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Events
Accrual Basis Accounting
Journalizing
Risk Tolerance
17. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Balance Sheet
Partnership
Source Documents
Stock
18. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.
Income Statement
Revenue Recognition Principle
Ponzi Scheme
Bonds
19. Record containing all accounts (with amounts) for a business.
Annual Financial Statements
Current Liabilities
Ledger
Expense Recognition Principle
20. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Annual Financial Statements
Audit
Assets
Limited Liability Corporation
21. Owners of a corporation who usually receive dividends. Also called shareholders.
Return
Current Liabilities
Surplus
Stockholders
22. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Bonds
Stock
Securities
Balance Sheet
23. An expense that changes from period to perio - such as food or gasoline costs.
Book Value
Varaiable Expense
Statement of Cash Flows
Corporation
24. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Deficit
Conceptual Framework
Prepaid Expenses
International Financial Reporting Standards
25. Difference between total debits and total credits (including the beginning balance) for an account.
General Journal
Account Balance
Measurement Principle
Accrued Expenses
26. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Adjusting Entry
Time Period Assumptions
Cost-benefit Constraint
Partnership Agreement
27. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of
Credit
Current Assets
Chart of Accounts
Sarbanes-Oxley Act (SOX)
28. A corporation's basic ownership share.
Securities
Unearned Revenues
Common Stock
Permanent Accounts
29. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Annual Financial Statements
Risk
Credit
Passive Income
30. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Passive Income
Pro Forma Financial Statement
Bookkeeping
Corporations
31. Activities within an organization that can affect the accounting equation.
Internal transactions
Matching Principle (or Expense Recognition Principle)
Audit
Net Loss
32. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Annual Financial Statements
Unsecured Loan
Surplus
Posting
33. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
External Transactions
Acquisition
Equity
Recordkeeping
34. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Corporation
Partnership Agreement
Accounting Equation
Surplus
35. The first time a company sells shares of its stock to the public.
Expenses
IPO
Securities and Exchange Commission
Ledger
36. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Unclassified Balance Sheets
Corporation
Intangible assets
Going-concern Assumptions
37. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.
Temporary Accounts
Journalizing
Matching Principle
Posting Reference Column
38. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Corporation
Permanent Accounts
Mergers
Passive Income
39. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
IPO
Plant Assets
Operating Cycle
Recordkeeping
40. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Debt Ratio
Passive Income
Accrual Basis Accounting
Adjusted Trial Balance
41. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.
NYSE (New York Stock Exchange)
Expense Recognition Principle
External Users
Going-concern Assumptions
42. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Interim Financial Statements
NASDAQ
Time Period Assumptions
Unsecured Loan
43. Income that is available after all of the essential financial commitments have been paid.
Discretionary Income
Debtors
T Account
Adjusted Trial Balance
44. Gross increase in equity from a company's business activities that earn income.
Going-concern Assumptions
External Users
Shares
Revenues
45. The twelve month period that ends when a company's sales activities are at their lowest point.
Natural Business Years
Income Summary
Shareholders
Time Period Assumptions
46. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Ethical Dilemma
Temporary Accounts
Journal
Recordkeeping
47. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Double Entry Accounting
Auditors
Risk Tolerance
Fiscal Year
48. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).
Accrual Basis Accounting
Present Value
Income Summary
Credit
49. Business owned by one person that is not organized as a corporation.
Portfolio Income
Sole Proprietorship
Preferred Stock
Money Market Account
50. The combining of two or more comapnies into one larger company.
IRA (Individual Retirement Account)
Materiality Constraint
Mergers
Source Documents