Test your basic knowledge |

DSST Principles Of Finance

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. Activities within an organization that can affect the accounting equation.






2. The money left over when income exceeds expenditure.






3. Difference between total debits and total credits (including the beginning balance) for an account.






4. The twelve month period that ends when a company's sales activities are at their lowest point.






5. All purpose journal for recording the debits and credits of transactions and events.






6. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






7. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






8. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






9. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






10. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






11. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.






12. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






13. Rules that specify acceptable accounting practices.






14. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






15. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






16. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






17. Length of time covered by financial statements; also called reporting period.






18. Process of recording transactions in a journal.






19. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






20. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






21. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






22. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






23. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






24. Happenings that both affect an organization's financial position and can be reliably measured.






25. Loaning or giving money to a business in orer to save it from bankruptcy.






26. Tool used to show the effects of transactions and events on individual accounts.






27. Report of changes in equity over a period; adjusted for increases and for decreases.

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


28. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






29. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






30. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






31. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






32. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






33. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






34. Balance sheet that broadly groups assets - liabilities - and equity accounts.






35. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






36. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






37. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






38. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.






39. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






40. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






41. List of accounts used by a company' includes and identification number for each account.






42. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






43. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






44. Principle that assumes transactions and events can be expressed in money units.






45. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






46. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






47. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






48. 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.






49. Area of accounting aimed mainly at serving the decision-making needs of internal users.






50. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.