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






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






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






4. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






5. A loan that is backed by collateral such as cars - houses - or other assets.






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






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






8. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






9. Individuals or organizations that owe money.






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






11. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






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






13. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






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






15. Tool used to show the effects of transactions and events on individual accounts.






16. 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.






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






18. Journal entries that affect at least three accounts.






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






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






21. 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.






22. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






23. Uncertainty about expected return.






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






25. 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.






26. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






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






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






29. 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






30. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






31. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






32. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






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






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






35. Difference between total debits and total credits (including the beginning balance) for an account.






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






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






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






39. 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.






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






41. 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.






42. 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






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






44. Independent group of full-time members responsible for setting accounting rules.






45. Happenings that both affect an organization's financial position and can be reliably measured.






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






47. Assets pulled out of the business by the owner.






48. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






49. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






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






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