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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. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Long Term Liabilities
Temporary Accounts
Securities
Matching Principle (or Expense Recognition Principle)
2. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Adjusted Trial Balance
Fiscal Year
Equity
International Financial Reporting Standards
3. Income that is available after all of the essential financial commitments have been paid.
Mergers
Current Assets
Accounting Cycle
Discretionary Income
4. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Long Term Investments
Managerial Accounting
Classified Balance Sheet
Closing process
5. Persons using accounting information who are directly involved in managing the organization.
Internal users
Owner Withdrawals
Full Disclosure Principle
Corporation
6. Length of time covered by financial statements; also called reporting period.
Accounting Period
Owner Withdrawals
Current Assets
Net Income
7. An expense that changes from period to perio - such as food or gasoline costs.
Varaiable Expense
Straight-line Depreciation Method
Securities and Exchange Commission
Long Term Liabilities
8. Happenings that both affect an organization's financial position and can be reliably measured.
Events
Bookkeeping
General Journal
Debtors
9. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Accounting
Credit
Securities
Expense Recognition Principle
10. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Sarbanes-Oxley Act (SOX)
Accounting Period
Balance Sheet
Posting
11. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Owner Investment
SMART Goal
Source Documents
Net Income
12. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
NYSE (New York Stock Exchange)
Unadjusted Trial Balance
SEC (Securites and Exchange Commision)
Risk
13. Individuals or organizations entitled to receive payments
Revenues
Plant Assets
Creditors
Equity
14. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Time Period Assumptions
Cash Basis Accounting
Owner - Capital
Cost Principle
15. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Assets
Posting Reference Column
Chart of Accounts
Long Term Liabilities
16. Expenses that remain the same regardless of the circumstances.
Prepaid Expenses
Plant Assets
Profit Margin
Fixed Expense
17. 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.
Preferred Stock
Accrued Revenues
Closing Entries
Discretionary Income
18. 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.
Federal Reserve System
Accrual Basis Accounting
Owner - Capital
Materiality Constraint
19. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Expense Recognition Principle
Passive Income
Bookkeeping
Risk Tolerance
20. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Accounting Period
Creditors
International Financial Reporting Standards
Posting
21. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Stockholders
Posting
Ethics
Unadjusted Trial Balance
22. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Financial Accounting
Events
Time Period Assumptions
Expenses
23. Process of recording transactions in a journal.
Journalizing
General Journal
Partnership
Current Assets
24. Gross increase in equity from a company's business activities that earn income.
Partnership
Internal transactions
Revenues
Liabilities
25. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Cost Principle
Temporary Accounts
Accounting
Unearned Revenue
26. The value of a future cash steam discounted at the appropriate market interest rate.
Present Value
Account Balance
Journal
Profit Margin
27. Business owned by a single person.
SEC (Securites and Exchange Commision)
Classified Balance Sheet
Events
Sole Propietorship
28. 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.
Book Value
Matching Principle
Current Assets
Adjusted Trial Balance
29. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Corporation
Classified Balance Sheet
Portfolio Income
Working Papers
30. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Account Balance
Shares
Work Sheet
Going-concern Assumptions
31. 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.
Money Market Account
Equity
Prepaid Expenses
Monetary Unit Assumption
32. Outflows or using up of assets as part of operations of business to generate sales.
Return
Posting
Stockholders
Expenses
33. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Unearned Revenues
Audit
Closing Entries
Debit
34. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Securities and Exchange Commission
Ethical Dilemma
Unadjusted Trial Balance
Common Stock
35. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Intangible assets
Classified Balance Sheet
Debt Ratio
Auditors
36. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Matching Principle (or Expense Recognition Principle)
Limited Liability Corporation
Corporations
Accounting Equation
37. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Portfolio Income
Business Entity Assumption
Income Statement
Corporation
38. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Accrued Revenues
Fixed Expense
Conceptual Framework
Classified Balance Sheet
39. 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)
IRA (Individual Retirement Account)
Stockholders
Permanent Accounts
40. 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).
International Accounting Standards Board
Closing Entries
Bonds
Book Value
41. Items paid for in advance of receiving their benefits. Classified as assets.
Prepaid Expenses
Contra Account
Liabilities
Equity
42. Owners of a corporation who usually receive dividends. Also called stockholders.
NYSE (New York Stock Exchange)
Account Balance
Debit
Shareholders
43. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Unadjusted Trial Balance
Contra Account
Return on Assets
Common Stock
44. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Accounting Equation
Ponzi Scheme
Partnership
Audit
45. A loan that is backed by collateral such as cars - houses - or other assets.
Posting
Secured Loan
Audit
Preferred Stock
46. Monies (or sums of money) received from an investment; often in percent form.
Return
Surplus
Cost Principle
Varaiable Expense
47. 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.
Statement of Owner's Equity
Cost-benefit Constraint
Federal Reserve System
Shares
48. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
Profit Margin
Unearned Revenues
Corporation
CD (Certificate of Deposit)
49. A tax deferred account that allows individuals to plan for their retirement.
Income Summary
Materiality Constraint
Trial balance
IRA (Individual Retirement Account)
50. 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.
Balance Column Account
Debit
Bonds
Journalizing