SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Varaiable Expense
Owner Investment
Secured Loan
Cash Basis Accounting
2. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Source Documents
External Users
Accounting Cycle
Money Market Account
3. 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).
Income Summary
Return on Assets
Adjusted Trial Balance
Measurement Principle
4. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Book Value
Account Balance
Operating Cycle
Revenues
5. Tool used to show the effects of transactions and events on individual accounts.
Internal transactions
Equity
Monetary Unit Assumption
T Account
6. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Owner - Capital
Accounting Period
Securities
Permanent Accounts
7. The principle prescribing that revenue is recognized when earned.
Posting Reference Column
Revenue Recognition Principle
Current Assets
Accounting Period
8. Individuals or organizations entitled to receive payments
Operating Cycle
Creditors
Securities and Exchange Commission
Risk Tolerance
9. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Post Closing Trial Balance
Partnership
Work Sheet
Profit Margin
10. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Materiality Constraint
Varaiable Expense
Statement of Cash Flows
Acquisition
11. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Debt Ratio
Expense Recognition Principle
Business Entity Assumption
Compound Journal Entries
12. List of accounts used by a company' includes and identification number for each account.
Chart of Accounts
Current Ratio
Cash Basis Accounting
NYSE (New York Stock Exchange)
13. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Unsecured Loan
Bonds
Account
IPO
14. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Ethical Dilemma
Money Market Account
Depreciation
Preferred Stock
15. 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.
Recordkeeping
Federal Reserve System
Double Entry Accounting
Partnership
16. Journal entries that affect at least three accounts.
Compound Journal Entries
Long Term Liabilities
Time Period Assumptions
SEC (Securites and Exchange Commision)
17. Gross increase in equity from a company's business activities that earn income.
Accrual Basis Accounting
Time Period Assumptions
Revenues
Ponzi Scheme
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.
Bonds
Present Value
Classified Balance Sheet
Contra Account
19. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Ethical Dilemma
Closing process
External Users
Common Stock
20. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Classified Balance Sheet
T Account
Temporary Accounts
Compound Journal Entries
21. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Account
International Accounting Standards Board
Balance Column Account
Portfolio Income
22. Area of accounting aimed mainly at serving external users.
Pro Forma Financial Statement
Financial Accounting
Annual Financial Statements
Internal users
23. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Liabilities
Statement of Cash Flows
Accounting
Mergers
24. Business owned by a single person.
Sole Propietorship
Varaiable Expense
Partnership
Debit
25. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Securities and Exchange Commission
Compound Journal Entries
Stock
Straight-line Depreciation Method
26. 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.
Posting Reference Column
Contra Account
Equity
Risk
27. 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
Preferred Stock
Return on Assets
Statement of Owner's Equity
NASDAQ
28. Persons using accounting information who are not directly involved in running the organization.
External Users
Journal
International Accounting Standards Board
Sarbanes-Oxley Act (SOX)
29. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Cost Principle
Cost-benefit Constraint
Owner - Capital
Internal transactions
30. The first time a company sells shares of its stock to the public.
Full Disclosure Principle
IPO
Common Stock
Time Period Assumptions
31. Independent group of full-time members responsible for setting accounting rules.
Financial Accounting Standards Board
Compound Journal Entries
Ledger
Book Value
32. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Accrued Expenses
Corporations
Trial balance
Monetary Unit Assumption
33. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Limited Liability Corporation
Compound Journal Entries
Revenue Recognition Principle
Temporary Accounts
34. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Accounting Cycle
Creditors
Adjusted Trial Balance
Time Period Assumptions
35. Income from investments - including dividends - interest - or the sale of a property.
Fiscal Year
Bonds
Classified Balance Sheet
Portfolio Income
36. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Audit
Current Assets
Debtors
Temporary Accounts
37. An expense that changes from period to perio - such as food or gasoline costs.
Account
Partnership
Varaiable Expense
SEC (Securites and Exchange Commision)
38. Statements that show the effect of proposed transactions and events as if they had occurred.
Revenues
NASDAQ
IPO
Pro Forma Financial Statement
39. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Partnership
Shares
Permanent Accounts
Managerial Accounting
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.
Accrued Expenses
Adjusting Entry
Matching Principle
Equity
41. Business owned by two or more people.
Partnership
Going-concern Assumptions
Varaiable Expense
Interim Financial Statements
42. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.
Accounting Equation
Ponzi Scheme
Full Disclosure Principle
Adjusted Trial Balance
43. Assets put into the business by the owner.
Unearned Revenue
Cost Principle
Owner Investment
Double Entry Accounting
44. 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.
Income Statement
Acquisition
Shares
Events
45. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Securities
Credit
Sole Proprietorship
Income Statement
46. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Adjusting Entry
CD (Certificate of Deposit)
Classified Balance Sheet
Sarbanes-Oxley Act (SOX)
47. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Owner Withdrawals
Managerial Accounting
Trial balance
Accrued Revenues
48. Happenings that both affect an organization's financial position and can be reliably measured.
Operating Cycle
Partnership Agreement
Events
Stockholders
49. The twelve month period that ends when a company's sales activities are at their lowest point.
Natural Business Years
Source Documents
Net Loss
Closing process
50. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Time Period Assumptions
Annual Financial Statements
Posting
Long Term Liabilities