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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. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Unclassified Balance Sheets
Financial Accounting
Accounting Equation
Return
2. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Long Term Liabilities
Trial balance
Surplus
Securities
3. 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.
Events
Expanded Accounting Equation
Common Stock
Sarbanes-Oxley Act (SOX)
4. Activities within an organization that can affect the accounting equation.
Return on Assets
Unclassified Balance Sheets
Risk
Internal transactions
5. Accounting information is based on cost with potential subsequent adjustments to fair value.
Sole Propietorship
CD (Certificate of Deposit)
Measurement Principle
Income Summary
6. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
International Accounting Standards Board
Working Papers
Unsecured Loan
Profit Margin
7. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Auditors
Classified Balance Sheet
Corporation
T Account
8. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Going-concern Assumptions
Events
Risk
Securities and Exchange Commission
9. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Owner Investment
Journal
Going-concern Assumptions
Source Documents
10. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.
Revenues
Current Liabilities
Account
Liabilities
11. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Ethical Dilemma
Preferred Stock
Working Papers
Journal
12. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Debit
Matching Principle (or Expense Recognition Principle)
Ponzi Scheme
Chart of Accounts
13. All purpose journal for recording the debits and credits of transactions and events.
Bookkeeping
Closing Entries
General Journal
Expenses
14. The twelve month period that ends when a company's sales activities are at their lowest point.
Work Sheet
Natural Business Years
Bonds
Varaiable Expense
15. Persons using accounting information who are not directly involved in running the organization.
Net Income
Unadjusted Trial Balance
Journal
External Users
16. Owners of a corporation who usually receive dividends. Also called stockholders.
Contra Account
Ethical Dilemma
Accrual Basis Accounting
Shareholders
17. Journal entries that affect at least three accounts.
Compound Journal Entries
International Financial Reporting Standards
Securities
Recordkeeping
18. Principle that assumes transactions and events can be expressed in money units.
Monetary Unit Assumption
Ethical Dilemma
Assets
General Journal
19. Excess of expenses over revenues for a period.
Journalizing
Passive Income
Net Loss
Corporation
20. List of accounts used by a company' includes and identification number for each account.
Securities
Conceptual Framework
Chart of Accounts
Recordkeeping
21. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Compound Journal Entries
Audit
Current Ratio
Limited Liability Corporation
22. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.
Post Closing Trial Balance
International Financial Reporting Standards
Net Loss
Owner - Capital
23. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Statement of Owner's Equity
Ponzi Scheme
CD (Certificate of Deposit)
Bookkeeping
24. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Preferred Stock
Stockholders
Portfolio Income
Business Entity Assumption
25. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Limited Liability Corporation
Posting
Equity
Profit Margin
26. A tax deferred account that allows individuals to plan for their retirement.
Partnership Agreement
Annual Financial Statements
Liabilities
IRA (Individual Retirement Account)
27. An expense that changes from period to perio - such as food or gasoline costs.
Plant Assets
Varaiable Expense
Owner - Capital
Balance Sheet
28. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Money Market Account
Credit
External Transactions
Common Stock
29. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Shares
Risk Tolerance
Unearned Revenue
Risk
30. 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.
Federal Reserve System
SMART Goal
Financial Accounting
Net Loss
31. 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.
Intangible assets
Bailout
International Financial Reporting Standards
Passive Income
32. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Time Period Assumptions
Balance Column Account
Internal users
Varaiable Expense
33. Persons using accounting information who are directly involved in managing the organization.
Bailout
Money Market Account
Internal users
Compound Journal Entries
34. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Acquisition
Accounting Period
Debit
Time Period Assumptions
35. Process of recording transactions in a journal.
Fiscal Year
Current Assets
Journalizing
Securities
36. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Work Sheet
Conceptual Framework
Accrual Basis Accounting
Accounting Cycle
37. Statements that show the effect of proposed transactions and events as if they had occurred.
Measurement Principle
Pro Forma Financial Statement
Cost Principle
Post Closing Trial Balance
38. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Going-concern Assumptions
Managerial Accounting
Generally Accepted Accounting Principles
Unearned Revenue
39. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Unsecured Loan
Managerial Accounting
Plant Assets
Accounting Period
40. 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.
Trial balance
Discretionary Income
Adjusting Entry
Debt Ratio
41. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Plant Assets
Closing Entries
Creditors
Net Loss
42. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Depreciation
Revenue Recognition Principle
Assets
Posting
43. Business owned by two or more people.
Posting
Securities and Exchange Commission
Risk
Partnership
44. Expenses that remain the same regardless of the circumstances.
Reversing Entries
Unearned Revenues
Federal Reserve System
Fixed Expense
45. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Money Market Account
Working Papers
SMART Goal
Cash Basis Accounting
46. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Unadjusted Trial Balance
Preferred Stock
Long Term Liabilities
Natural Business Years
47. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Conceptual Framework
International Financial Reporting Standards
Financial Accounting Standards Board
Cost Principle
48. Difference between total debits and total credits (including the beginning balance) for an account.
Common Stock
Account Balance
Adjusting Entry
External Transactions
49. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Natural Business Years
Accrued Expenses
Owner - Capital
Bookkeeping
50. 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.
Risk
Acquisition
Equity
Partnership Agreement