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. Record containing all accounts (with amounts) for a business.






2. The first time a company sells shares of its stock to the public.






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






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






5. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






7. Excess of expenses over revenues for a period.






8. A legal entity that is seperate from its owners.






9. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






10. Length of time covered by financial statements; also called reporting period.






11. The principle prescribing that revenue is recognized when earned.






12. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.






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






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






15. Persons using accounting information who are directly involved in managing the organization.






16. An expense that changes from period to perio - such as food or gasoline costs.






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






18. 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.






19. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






20. 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.






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






22. 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.






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






24. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






26. Process of transferring journal entry information to the ledger; computerized systems automate this process.






27. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






28. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






29. 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.






30. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






31. The money left over when income exceeds expenditure.






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






33. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






34. Balance sheet that broadly groups assets - liabilities - and equity accounts.






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






36. Individuals or organizations that owe money.






37. Uncertainty about expected return.






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






39. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






40. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.






41. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






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






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






44. Assets put into the business by the owner.






45. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






46. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






47. 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.






48. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






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






50. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.