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Test your basic knowledge |
DSST Principles Of Finance
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Subjects
:
dsst
,
business-skills
Instructions:
Answer 50 questions in 15 minutes.
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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 principle prescribing that revenue is recognized when earned.
Revenue Recognition Principle
Posting
Unearned Revenue
Present Value
2. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Accounting Cycle
Work Sheet
Bailout
Financial Accounting
3. Journal entries that affect at least three accounts.
Compound Journal Entries
Shareholders
Unsecured Loan
Expense Recognition Principle
4. Excess of expenses over revenues for a period.
Net Loss
Cost-benefit Constraint
Conceptual Framework
Chart of Accounts
5. Persons using accounting information who are not directly involved in running the organization.
External Users
Debit
T Account
Owner Investment
6. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Interim Financial Statements
Financial Accounting Standards Board
Risk Tolerance
Temporary Accounts
7. Record containing all accounts (with amounts) for a business.
Partnership
Securities and Exchange Commission
Ledger
T Account
8. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Balance Sheet
Measurement Principle
Compound Journal Entries
Acquisition
9. The first time a company sells shares of its stock to the public.
IPO
Preferred Stock
Trial balance
Internal transactions
10. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
IRA (Individual Retirement Account)
Passive Income
Sole Proprietorship
Ethical Dilemma
11. 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.
Source Documents
Accounting Equation
Matching Principle
Revenue Recognition Principle
12. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
SEC (Securites and Exchange Commision)
Bookkeeping
Ledger
Statement of Cash Flows
13. A legal entity that is seperate from its owners.
Income Statement
Full Disclosure Principle
Corporations
Preferred Stock
14. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Revenue Recognition Principle
Audit
Time Period Assumptions
Owner - Capital
15. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
CD (Certificate of Deposit)
Straight-line Depreciation Method
Net Income
NYSE (New York Stock Exchange)
16. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Preferred Stock
Debit
Accounting
Going-concern Assumptions
17. Exchanges of economic value between one entity and another entity.
Mergers
Federal Reserve System
External Transactions
Accounting
18. Income that is available after all of the essential financial commitments have been paid.
Accrued Revenues
Discretionary Income
Compound Journal Entries
Secured Loan
19. Loaning or giving money to a business in orer to save it from bankruptcy.
Bailout
Bonds
Credit
Annual Financial Statements
20. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Debit
Account
Time Period Assumptions
Posting Reference Column
21. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Partnership Agreement
External Users
Source Documents
Deficit
22. Owners of a corporation who usually receive dividends. Also called shareholders.
Matching Principle
Unclassified Balance Sheets
Stockholders
Posting Reference Column
23. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Mergers
Accrual Basis Accounting
Work Sheet
Source Documents
24. Happenings that both affect an organization's financial position and can be reliably measured.
Events
International Accounting Standards Board
Owner - Capital
Ponzi Scheme
25. Principle that assumes transactions and events can be expressed in money units.
Monetary Unit Assumption
Classified Balance Sheet
Fixed Expense
Mergers
26. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Corporation
Working Papers
Current Ratio
International Financial Reporting Standards
27. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Assets
Accounting
SMART Goal
International Accounting Standards Board
28. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.
Revenue Recognition Principle
Securities
SEC (Securites and Exchange Commision)
Federal Reserve System
29. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Temporary Accounts
Permanent Accounts
General Journal
Expenses
30. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Stock
Balance Column Account
Unclassified Balance Sheets
Audit
31. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Trial balance
Limited Liability Corporation
Events
Pro Forma Financial Statement
32. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Current Ratio
SEC (Securites and Exchange Commision)
Cost-benefit Constraint
Adjusting Entry
33. Individuals or organizations entitled to receive payments
Current Liabilities
Creditors
Conceptual Framework
Measurement Principle
34. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Preferred Stock
Time Period Assumptions
T Account
Bookkeeping
35. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Adjusting Entry
Ethical Dilemma
Cash Basis Accounting
Secured Loan
36. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Reversing Entries
Partnership
Securities and Exchange Commission
Account
37. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Unearned Revenue
Owner - Capital
Accounting Equation
Secured Loan
38. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
External Users
General Journal
Securities
Time Period Assumptions
39. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Prepaid Expenses
Recordkeeping
Deficit
Expense Recognition Principle
40. Accounting information is based on cost with potential subsequent adjustments to fair value.
Acquisition
Measurement Principle
Recordkeeping
Chart of Accounts
41. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Account
Expenses
Temporary Accounts
Source Documents
42. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.
Common Stock
Acquisition
Unearned Revenues
SMART Goal
43. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Creditors
Unsecured Loan
Journalizing
Matching Principle (or Expense Recognition Principle)
44. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Assets
Annual Financial Statements
Natural Business Years
Accrued Expenses
45. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Acquisition
Cost Principle
Partnership
Statement of Cash Flows
46. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Time Period Assumptions
Profit Margin
Pro Forma Financial Statement
Sarbanes-Oxley Act (SOX)
47. Owners of a corporation who usually receive dividends. Also called stockholders.
Shareholders
Straight-line Depreciation Method
Fiscal Year
Time Period Assumptions
48. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Unadjusted Trial Balance
Pro Forma Financial Statement
Interim Financial Statements
Time Period Assumptions
49. Business owned by a single person.
Risk
Adjusted Trial Balance
Long Term Liabilities
Sole Propietorship
50. Report of changes in equity over a period; adjusted for increases and for decreases.
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