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. All purpose journal for recording the debits and credits of transactions and events.
Fiscal Year
Risk
General Journal
Revenue Recognition Principle
2. The first time a company sells shares of its stock to the public.
Time Period Assumptions
IPO
Working Papers
Monetary Unit Assumption
3. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Trial balance
SEC (Securites and Exchange Commision)
Accrued Expenses
Equity
4. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Compound Journal Entries
Net Income
Contra Account
Materiality Constraint
5. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Ethical Dilemma
Owner - Capital
Varaiable Expense
Revenue Recognition Principle
6. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Recordkeeping
Bookkeeping
Sarbanes-Oxley Act (SOX)
Passive Income
7. Excess of expenses over revenues for a period.
Internal transactions
Stockholders
Net Loss
Equity
8. A legal entity that is seperate from its owners.
Ethics
Going-concern Assumptions
Corporations
Cost-benefit Constraint
9. Uncertainty about expected return.
Securities
Pro Forma Financial Statement
Risk
Unearned Revenues
10. 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
Sarbanes-Oxley Act (SOX)
Full Disclosure Principle
T Account
Surplus
11. 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
General Journal
Preferred Stock
Balance Sheet
Revenue Recognition Principle
12. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Accounting Equation
Accounting
Partnership
Trial balance
13. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Current Assets
Common Stock
Accrued Revenues
Temporary Accounts
14. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Sole Proprietorship
Credit
Money Market Account
Debit
15. 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.
SEC (Securites and Exchange Commision)
Business Entity Assumption
Fixed Expense
Common Stock
16. Owners of a corporation who usually receive dividends. Also called shareholders.
Profit Margin
Source Documents
Bonds
Stockholders
17. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Reversing Entries
Posting
Assets
Debtors
18. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
Accounting
Bookkeeping
CD (Certificate of Deposit)
SMART Goal
19. 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
Recordkeeping
NASDAQ
Accounting Equation
Partnership
20. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Financial Accounting
Cost-benefit Constraint
Partnership
Creditors
21. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
NASDAQ
External Users
Risk Tolerance
Ledger
22. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Bonds
Securities and Exchange Commission
Long Term Investments
Events
23. 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.
Reversing Entries
Sarbanes-Oxley Act (SOX)
Ethical Dilemma
Materiality Constraint
24. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Revenues
Journal
NYSE (New York Stock Exchange)
Unclassified Balance Sheets
25. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
Full Disclosure Principle
Cost Principle
Net Income
Partnership Agreement
26. 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.
Depreciation
Risk Tolerance
Balance Sheet
Federal Reserve System
27. 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
IRA (Individual Retirement Account)
CD (Certificate of Deposit)
Financial Accounting Standards Board
28. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Journalizing
Accrued Revenues
SEC (Securites and Exchange Commision)
Income Summary
29. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.
Closing Entries
Matching Principle
Adjusting Entry
Present Value
30. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
SEC (Securites and Exchange Commision)
Federal Reserve System
Owner Investment
Fiscal Year
31. Business owned by one person that is not organized as a corporation.
Surplus
Current Ratio
Shares
Sole Proprietorship
32. 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.
Ethics
Bonds
Creditors
Current Assets
33. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Compound Journal Entries
Audit
Monetary Unit Assumption
Statement of Owner's Equity
34. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Sole Proprietorship
Cost-benefit Constraint
Bookkeeping
Accounting
35. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Debit
International Accounting Standards Board
Long Term Liabilities
Varaiable Expense
36. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Compound Journal Entries
Plant Assets
Fiscal Year
Work Sheet
37. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Conceptual Framework
Stock
Plant Assets
Annual Financial Statements
38. Record containing all accounts (with amounts) for a business.
Present Value
Ledger
Working Papers
Prepaid Expenses
39. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Income Statement
Time Period Assumptions
Securities
Chart of Accounts
40. 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.
Expenses
Deficit
International Financial Reporting Standards
Partnership Agreement
41. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Events
Source Documents
Revenue Recognition Principle
Unearned Revenues
42. Statements that show the effect of proposed transactions and events as if they had occurred.
Pro Forma Financial Statement
Bailout
Unearned Revenue
Accounting
43. An expense that changes from period to perio - such as food or gasoline costs.
Varaiable Expense
Debtors
Statement of Owner's Equity
Balance Column Account
44. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Accounting
Managerial Accounting
Statement of Owner's Equity
Assets
45. Area of accounting aimed mainly at serving external users.
Common Stock
Financial Accounting
Partnership Agreement
Journal
46. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Return
Cash Basis Accounting
Cost Principle
Time Period Assumptions
47. Persons using accounting information who are not directly involved in running the organization.
Return on Assets
External Users
Prepaid Expenses
Time Period Assumptions
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.
Accounting Period
NYSE (New York Stock Exchange)
General Journal
Depreciation
49. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Ledger
Balance Sheet
Time Period Assumptions
Account Balance
50. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Accounting
Balance Column Account
Liabilities
Money Market Account