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. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.






2. 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.






3. 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.






4. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






5. Excess of expenses over revenues for a period.






6. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






7. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






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






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






10. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






11. Area of accounting aimed mainly at serving external users.






12. Income from investments - including dividends - interest - or the sale of a property.






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






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






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






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






17. 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.






18. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






19. 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.






20. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






21. Activities within an organization that can affect the accounting equation.






22. Income that is available after all of the essential financial commitments have been paid.






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






24. 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.






25. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






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






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






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






29. Outflows or using up of assets as part of operations of business to generate sales.






30. 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.






31. Statements that show the effect of proposed transactions and events as if they had occurred.






32. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






33. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






34. Business owned by a single person.






35. Journal entries that affect at least three accounts.






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






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






38. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






39. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






40. Gross increase in equity from a company's business activities that earn income.






41. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






43. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






44. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






45. Process of recording transactions in a journal.






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






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






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






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






50. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests