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. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






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






3. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






4. 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).






5. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






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






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






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






9. Excess of expenses over revenues for a period.






10. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






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






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






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






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






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






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






17. 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.






18. List of accounts and balances prepared after period-end adjustments are recorded and posted.






19. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






20. The principle prescribing that revenue is recognized when earned.






21. 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.






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






23. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






24. The money left over when income exceeds expenditure.






25. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






26. Record containing all accounts (with amounts) for a business.






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






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






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






30. 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.






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






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






33. Business owned by a single person.






34. Independent group of full-time members responsible for setting accounting rules.






35. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






37. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






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






39. Uncertainty about expected return.






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






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






42. The first time a company sells shares of its stock to the public.






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






44. 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


45. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






46. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






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






48. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






49. Items paid for in advance of receiving their benefits. Classified as assets.






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