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. 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.






2. Expenses that remain the same regardless of the circumstances.






3. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






4. The combining of two or more comapnies into one larger company.






5. Individuals or organizations entitled to receive payments






6. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






7. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






8. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.






9. Monies (or sums of money) received from an investment; often in percent form.






10. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






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






12. 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.






13. A legal entity that is seperate from its owners.






14. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






15. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






16. Individuals hired to review financial reports and information systems of organizations.






17. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






18. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






19. Assets put into the business by the owner.






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






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






22. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






23. 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.






24. Gross increase in equity from a company's business activities that earn income.






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






26. 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






27. Rules that specify acceptable accounting practices.






28. Income that is available after all of the essential financial commitments have been paid.






29. Area of accounting aimed mainly at serving external users.






30. Process of transferring journal entry information to the ledger; computerized systems automate this process.






31. 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.






32. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






33. A loan that is backed by collateral such as cars - houses - or other assets.






34. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






35. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






36. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






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






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






40. Excess of expenses over revenues for a period.






41. Statements that show the effect of proposed transactions and events as if they had occurred.






42. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






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






44. An expense that changes from period to perio - such as food or gasoline costs.






45. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






47. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






48. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






49. The money left over when income exceeds expenditure.






50. Outflows or using up of assets as part of operations of business to generate sales.