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. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Going-concern Assumptions
Compound Journal Entries
Passive Income
Audit
2. 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.
T Account
Plant Assets
Unearned Revenues
Common Stock
3. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Owner Investment
Trial balance
Equity
SEC (Securites and Exchange Commision)
4. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Accounting Period
Return on Assets
Current Assets
Accounting
5. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Unearned Revenue
External Users
Accounting Equation
Shareholders
6. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Auditors
Time Period Assumptions
Measurement Principle
Passive Income
7. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Cost Principle
Sole Propietorship
Balance Sheet
Internal transactions
8. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Sarbanes-Oxley Act (SOX)
Matching Principle
External Users
Plant Assets
9. Business owned by a single person.
Risk
Sole Propietorship
Ponzi Scheme
Return
10. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Expenses
Temporary Accounts
Revenue Recognition Principle
Audit
11. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Balance Column Account
Matching Principle
Book Value
Pro Forma Financial Statement
12. All purpose journal for recording the debits and credits of transactions and events.
Operating Cycle
General Journal
Owner Investment
Adjusted Trial Balance
13. Happenings that both affect an organization's financial position and can be reliably measured.
Events
Going-concern Assumptions
Account
SMART Goal
14. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Credit
Acquisition
Partnership
Profit Margin
15. Length of time covered by financial statements; also called reporting period.
Current Assets
Surplus
Accounting Period
External Transactions
16. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Unadjusted Trial Balance
Statement of Cash Flows
Shares
Interim Financial Statements
17. Income from investments - including dividends - interest - or the sale of a property.
Portfolio Income
Annual Financial Statements
Post Closing Trial Balance
Current Ratio
18. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Shares
T Account
Ledger
Accounting Cycle
19. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.
Ponzi Scheme
Owner Investment
Work Sheet
Revenue Recognition Principle
20. Goals that are specific - measurable - attainable - realistic - and time bound.
Long Term Liabilities
Securities
SMART Goal
Internal transactions
21. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Balance Sheet
Chart of Accounts
Profit Margin
Annual Financial Statements
22. 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.
NYSE (New York Stock Exchange)
General Journal
Net Income
Shares
23. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Unadjusted Trial Balance
Annual Financial Statements
Partnership Agreement
Expense Recognition Principle
24. Owners of a corporation who usually receive dividends. Also called stockholders.
Debit
Shareholders
Accounting
Temporary Accounts
25. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Closing process
Recordkeeping
General Journal
Assets
26. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Statement of Owner's Equity
Corporation
External Users
Limited Liability Corporation
27. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.
Chart of Accounts
Deficit
General Journal
Income Statement
28. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Corporations
Business Entity Assumption
Interim Financial Statements
Statement of Owner's Equity
29. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Straight-line Depreciation Method
Balance Column Account
Closing process
Conceptual Framework
30. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
International Accounting Standards Board
Book Value
Work Sheet
Natural Business Years
31. Business owned by two or more people.
Partnership
Net Loss
Mergers
Corporations
32. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Stock
Conceptual Framework
Surplus
Assets
33. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Fiscal Year
Owner Withdrawals
Long Term Liabilities
Recordkeeping
34. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Reversing Entries
Unsecured Loan
Generally Accepted Accounting Principles
External Transactions
35. 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.
Present Value
Accrued Revenues
Portfolio Income
Adjusting Entry
36. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Accrued Expenses
Bonds
Unearned Revenue
Journal
37. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Common Stock
NYSE (New York Stock Exchange)
Cost Principle
Journal
38. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Fixed Expense
Securities and Exchange Commission
Bookkeeping
Common Stock
39. Monies (or sums of money) received from an investment; often in percent form.
Work Sheet
Return
Corporations
Securities
40. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Measurement Principle
Fiscal Year
Materiality Constraint
Unearned Revenues
41. 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.
Secured Loan
Bonds
Preferred Stock
Compound Journal Entries
42. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
T Account
Accrual Basis Accounting
Recordkeeping
Auditors
43. Expenses that remain the same regardless of the circumstances.
Bookkeeping
Income Summary
Fixed Expense
IPO
44. Area of accounting aimed mainly at serving external users.
Balance Column Account
Depreciation
Financial Accounting
Closing process
45. Gross increase in equity from a company's business activities that earn income.
Compound Journal Entries
Revenues
Annual Financial Statements
Debt Ratio
46. 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.
Cost Principle
Discretionary Income
Federal Reserve System
Unadjusted Trial Balance
47. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Interim Financial Statements
Full Disclosure Principle
Deficit
Journal
48. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
IPO
Balance Sheet
Liabilities
Money Market Account
49. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
Net Income
Mergers
Owner - Capital
Partnership
50. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
CD (Certificate of Deposit)
Classified Balance Sheet
Straight-line Depreciation Method
Shares