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. The first time a company sells shares of its stock to the public.
Internal users
Unsecured Loan
IPO
Income Summary
2. A legal entity that is seperate from its owners.
Corporations
Full Disclosure Principle
Accrued Revenues
Long Term Investments
3. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Book Value
Accounting Cycle
International Accounting Standards Board
Net Loss
4. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Measurement Principle
Posting
Accounting
Trial balance
5. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Securities and Exchange Commission
Equity
Ledger
Securities
6. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Pro Forma Financial Statement
Sole Proprietorship
Corporation
Shares
7. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Expense Recognition Principle
Time Period Assumptions
Financial Accounting Standards Board
Bailout
8. Assets put into the business by the owner.
Partnership
Risk
Owner Investment
Mergers
9. Assets pulled out of the business by the owner.
Owner Investment
Matching Principle
Revenues
Owner Withdrawals
10. 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.
Partnership Agreement
Federal Reserve System
NASDAQ
Debtors
11. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Secured Loan
Unearned Revenues
Auditors
External Users
12. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Adjusted Trial Balance
Accounting
Plant Assets
Stock
13. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Conceptual Framework
Equity
Accounting Cycle
Post Closing Trial Balance
14. 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.
Managerial Accounting
Conceptual Framework
Unclassified Balance Sheets
Owner - Capital
15. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Securities and Exchange Commission
Intangible assets
Unadjusted Trial Balance
Accrued Expenses
16. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Credit
Shares
Temporary Accounts
Working Papers
17. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Long Term Liabilities
Unsecured Loan
Depreciation
Partnership Agreement
18. 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.
Journalizing
Liabilities
Monetary Unit Assumption
Deficit
19. 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.
Closing Entries
Secured Loan
Contra Account
Equity
20. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Work Sheet
Unclassified Balance Sheets
External Transactions
Partnership Agreement
21. 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
Ponzi Scheme
Unsecured Loan
Stockholders
22. A loan that is backed by collateral such as cars - houses - or other assets.
Return
CD (Certificate of Deposit)
Secured Loan
Owner Withdrawals
23. Accounting information is based on cost with potential subsequent adjustments to fair value.
Fiscal Year
Measurement Principle
Owner Investment
Temporary Accounts
24. All purpose journal for recording the debits and credits of transactions and events.
Common Stock
Bonds
General Journal
Income Statement
25. 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
SMART Goal
Accounting Cycle
Sarbanes-Oxley Act (SOX)
Assets
26. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
External Transactions
Adjusted Trial Balance
Book Value
Contra Account
27. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Limited Liability Corporation
CD (Certificate of Deposit)
Auditors
Passive Income
28. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Liabilities
Bonds
Partnership
CD (Certificate of Deposit)
29. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Working Papers
Bookkeeping
Varaiable Expense
Events
30. 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
Net Income
Preferred Stock
Internal users
Intangible assets
31. Happenings that both affect an organization's financial position and can be reliably measured.
Events
Posting
Partnership
Going-concern Assumptions
32. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Discretionary Income
Deficit
Debt Ratio
Sole Proprietorship
33. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Sole Propietorship
Balance Sheet
Accrued Expenses
Source Documents
34. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Partnership Agreement
SEC (Securites and Exchange Commision)
General Journal
Return
35. Loaning or giving money to a business in orer to save it from bankruptcy.
Bookkeeping
Stockholders
Generally Accepted Accounting Principles
Bailout
36. List of accounts used by a company' includes and identification number for each account.
Acquisition
Chart of Accounts
Bonds
Events
37. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
SMART Goal
Limited Liability Corporation
Long Term Investments
Sole Propietorship
38. Goals that are specific - measurable - attainable - realistic - and time bound.
SMART Goal
Fiscal Year
Liabilities
Accrual Basis Accounting
39. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Shares
Debit
Auditors
Account
40. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Classified Balance Sheet
External Users
Limited Liability Corporation
Adjusted Trial Balance
41. Tool used to show the effects of transactions and events on individual accounts.
Ponzi Scheme
T Account
Closing Entries
Unsecured Loan
42. 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.
Accrued Revenues
Bailout
Corporations
Time Period Assumptions
43. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Plant Assets
Return
Account
Balance Column Account
44. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Materiality Constraint
Book Value
Preferred Stock
Accounting Period
45. 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
46. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Annual Financial Statements
Working Papers
Unearned Revenue
Corporations
47. 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.
Bonds
Current Liabilities
Ethics
Expense Recognition Principle
48. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Debt Ratio
Partnership Agreement
Monetary Unit Assumption
Unclassified Balance Sheets
49. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Secured Loan
Matching Principle
Equity
Current Ratio
50. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Permanent Accounts
Classified Balance Sheet
Creditors
Closing Entries