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. 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






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






3. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






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






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






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






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






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






9. 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.






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






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






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






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






14. Persons using accounting information who are not directly involved in running the organization.






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






16. Owners of a corporation who usually receive dividends. Also called shareholders.






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






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






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






20. 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.






21. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






22. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






24. Business owned by one person that is not organized as a corporation.






25. Process of recording transactions in a journal.






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






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






28. 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.






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






30. 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.






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






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






33. Principle that assumes transactions and events can be expressed in money units.






34. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






35. A tax deferred account that allows individuals to plan for their retirement.






36. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






37. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






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






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






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






41. Assets pulled out of the business by the owner.






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






43. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






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






45. List of accounts and balances prepared before accounting adjustments are recorded and posted.






46. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






47. Business owned by a single person.






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






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






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






Can you answer 50 questions in 15 minutes?



Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests