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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. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Varaiable Expense
Current Liabilities
Book Value
Passive Income
2. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Conceptual Framework
Partnership
Statement of Owner's Equity
Corporation
3. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Posting
Trial balance
Post Closing Trial Balance
General Journal
4. 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.
Financial Accounting Standards Board
Matching Principle (or Expense Recognition Principle)
Measurement Principle
Bonds
5. Independent group of full-time members responsible for setting accounting rules.
Financial Accounting Standards Board
Accounting
Accrual Basis Accounting
Permanent Accounts
6. A corporation's basic ownership share.
Common Stock
Account Balance
Expense Recognition Principle
Profit Margin
7. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Stock
CD (Certificate of Deposit)
Deficit
Debit
8. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Work Sheet
Cost Principle
Financial Accounting Standards Board
Trial balance
9. Goals that are specific - measurable - attainable - realistic - and time bound.
Owner - Capital
Expenses
SMART Goal
Working Papers
10. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Closing process
Stock
Sole Propietorship
Financial Accounting
11. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
Interim Financial Statements
Annual Financial Statements
CD (Certificate of Deposit)
Risk
12. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Posting
Securities
Balance Column Account
Securities and Exchange Commission
13. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Unclassified Balance Sheets
Annual Financial Statements
Statement of Cash Flows
Portfolio Income
14. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Plant Assets
Long Term Investments
Business Entity Assumption
Net Loss
15. 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.
Partnership Agreement
Chart of Accounts
Owner - Capital
Financial Accounting
16. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Interim Financial Statements
Matching Principle
Money Market Account
Book Value
17. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Expense Recognition Principle
Events
External Transactions
Partnership Agreement
18. List of accounts used by a company' includes and identification number for each account.
Bookkeeping
Chart of Accounts
Secured Loan
Time Period Assumptions
19. Income from investments - including dividends - interest - or the sale of a property.
Auditors
Double Entry Accounting
Reversing Entries
Portfolio Income
20. Statements that show the effect of proposed transactions and events as if they had occurred.
Pro Forma Financial Statement
Shareholders
Cost Principle
Portfolio Income
21. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Long Term Investments
Expense Recognition Principle
Preferred Stock
Audit
22. Record containing all accounts (with amounts) for a business.
Credit
Ledger
Matching Principle
Account Balance
23. Individuals or organizations that owe money.
Closing Entries
Debtors
Ethical Dilemma
Limited Liability Corporation
24. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Partnership
Revenue Recognition Principle
Contra Account
Bookkeeping
25. Journal entries that affect at least three accounts.
Managerial Accounting
SMART Goal
Unadjusted Trial Balance
Compound Journal Entries
26. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Common Stock
Securities
Book Value
Journal
27. Individuals hired to review financial reports and information systems of organizations.
Financial Accounting Standards Board
Shares
Partnership
Auditors
28. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Return on Assets
Balance Column Account
Net Income
IPO
29. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Working Papers
Accounting Cycle
Events
Ledger
30. Activities within an organization that can affect the accounting equation.
Partnership
Accrued Revenues
IRA (Individual Retirement Account)
Internal transactions
31. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Cash Basis Accounting
Profit Margin
Ethics
Cost-benefit Constraint
32. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Pro Forma Financial Statement
Present Value
Expenses
Passive Income
33. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Accounting
NASDAQ
Return on Assets
Journalizing
34. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Internal users
Full Disclosure Principle
Journal
Posting Reference Column
35. 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.
Ethics
Credit
Straight-line Depreciation Method
International Financial Reporting Standards
36. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Working Papers
Owner Withdrawals
Depreciation
Matching Principle (or Expense Recognition Principle)
37. Assets put into the business by the owner.
Pro Forma Financial Statement
Owner Withdrawals
SMART Goal
Owner Investment
38. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Statement of Cash Flows
Intangible assets
Stock
Natural Business Years
39. Persons using accounting information who are directly involved in managing the organization.
Double Entry Accounting
Limited Liability Corporation
Classified Balance Sheet
Internal users
40. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Generally Accepted Accounting Principles
Securities
Unsecured Loan
Business Entity Assumption
41. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Portfolio Income
Ethics
Statement of Owner's Equity
Long Term Investments
42. The money left over when income exceeds expenditure.
Matching Principle (or Expense Recognition Principle)
Surplus
Events
Accounting
43. Uncertainty about expected return.
Risk
Internal users
Liabilities
SMART Goal
44. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Accrual Basis Accounting
Net Income
Account Balance
Present Value
45. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Sole Proprietorship
Unadjusted Trial Balance
Temporary Accounts
T Account
46. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Materiality Constraint
Net Income
External Users
Shareholders
47. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Discretionary Income
Journal
Business Entity Assumption
Money Market Account
48. 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.
Common Stock
Expense Recognition Principle
NYSE (New York Stock Exchange)
Posting
49. The first time a company sells shares of its stock to the public.
Common Stock
Stockholders
Unsecured Loan
IPO
50. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Owner - Capital
Debtors
Accrued Expenses
Income Statement