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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. Assets put into the business by the owner.






3. 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.






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






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






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






7. Excess of expenses over revenues for a period.






8. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






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






10. 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.






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






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






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






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






15. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






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






17. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






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






19. 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






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






21. 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






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






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






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






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






26. 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).






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


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






29. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






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






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






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






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






34. The value of a future cash steam discounted at the appropriate market interest rate.






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






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






37. Individuals or organizations that owe money.






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






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






40. Exchanges of economic value between one entity and another entity.






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






42. 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






43. Individuals or organizations entitled to receive payments






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






45. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






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






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






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






49. Income from investments - including dividends - interest - or the sale of a property.






50. 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.