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. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Posting Reference Column
Unsecured Loan
Account
Revenue Recognition Principle
2. 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.
Adjusted Trial Balance
Current Liabilities
Equity
Intangible assets
3. Uncertainty about expected return.
Fiscal Year
Risk
SMART Goal
Accrual Basis Accounting
4. Activities within an organization that can affect the accounting equation.
Passive Income
Unsecured Loan
Going-concern Assumptions
Internal transactions
5. Persons using accounting information who are not directly involved in running the organization.
Return
External Users
NYSE (New York Stock Exchange)
Posting
6. A legal entity that is seperate from its owners.
Corporations
Working Papers
Measurement Principle
Ponzi Scheme
7. Difference between total debits and total credits (including the beginning balance) for an account.
Account Balance
NYSE (New York Stock Exchange)
Return on Assets
Statement of Cash Flows
8. 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
Accounting Period
Acquisition
Post Closing Trial Balance
NASDAQ
9. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Bonds
Interim Financial Statements
Intangible assets
Current Liabilities
10. Tool used to show the effects of transactions and events on individual accounts.
Common Stock
T Account
Trial balance
Net Income
11. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Closing Entries
Business Entity Assumption
Return on Assets
Accrual Basis Accounting
12. All purpose journal for recording the debits and credits of transactions and events.
Operating Cycle
Partnership Agreement
Sole Propietorship
General Journal
13. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Risk Tolerance
Measurement Principle
Prepaid Expenses
Generally Accepted Accounting Principles
14. Rules that specify acceptable accounting practices.
Materiality Constraint
IRA (Individual Retirement Account)
Profit Margin
Generally Accepted Accounting Principles
15. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Credit
Business Entity Assumption
IPO
NASDAQ
16. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Closing process
Posting
Closing Entries
Revenues
17. Exchanges of economic value between one entity and another entity.
External Transactions
Cash Basis Accounting
Accrued Revenues
Stockholders
18. Assets pulled out of the business by the owner.
Expanded Accounting Equation
Owner Withdrawals
Accounting
Events
19. Gross increase in equity from a company's business activities that earn income.
Interim Financial Statements
Revenues
Unearned Revenue
Contra Account
20. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.
Present Value
Income Statement
Net Income
Assets
21. Record containing all accounts (with amounts) for a business.
Ledger
Net Income
Compound Journal Entries
Auditors
22. Outflows or using up of assets as part of operations of business to generate sales.
Return
Expenses
Pro Forma Financial Statement
Business Entity Assumption
23. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Owner Withdrawals
Credit
Partnership
Source Documents
24. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Passive Income
Bookkeeping
CD (Certificate of Deposit)
Monetary Unit Assumption
25. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Closing Entries
Current Ratio
Ethical Dilemma
Creditors
26. 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.
Money Market Account
Working Papers
Owner - Capital
Net Loss
27. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Expenses
NYSE (New York Stock Exchange)
Long Term Liabilities
Profit Margin
28. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Closing process
Net Income
Preferred Stock
Current Assets
29. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Current Assets
Internal transactions
Money Market Account
Revenues
30. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Unearned Revenue
Temporary Accounts
Risk Tolerance
Full Disclosure Principle
31. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Audit
Operating Cycle
Preferred Stock
Depreciation
32. Accounting information is based on cost with potential subsequent adjustments to fair value.
Measurement Principle
Financial Accounting Standards Board
Federal Reserve System
Accounting Period
33. Process of recording transactions in a journal.
Journalizing
Revenue Recognition Principle
Interim Financial Statements
Adjusted Trial Balance
34. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Revenues
Mergers
Shares
Current Ratio
35. A corporation's basic ownership share.
Present Value
Common Stock
Materiality Constraint
International Financial Reporting Standards
36. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Deficit
Time Period Assumptions
Unearned Revenue
Cost-benefit Constraint
37. 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.
Pro Forma Financial Statement
Discretionary Income
Prepaid Expenses
NYSE (New York Stock Exchange)
38. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Debt Ratio
International Accounting Standards Board
Stockholders
Bookkeeping
39. Individuals hired to review financial reports and information systems of organizations.
Permanent Accounts
Contra Account
CD (Certificate of Deposit)
Auditors
40. Statements that show the effect of proposed transactions and events as if they had occurred.
Creditors
Pro Forma Financial Statement
Corporation
Securities
41. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Accounting Equation
Time Period Assumptions
General Journal
Conceptual Framework
42. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Ponzi Scheme
Monetary Unit Assumption
Statement of Cash Flows
Journal
43. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Going-concern Assumptions
Cost-benefit Constraint
Assets
Unclassified Balance Sheets
44. 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.
Accounting Cycle
Accounting Equation
Bonds
Adjusting Entry
45. 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.
Discretionary Income
Liabilities
Accrued Revenues
Return on Assets
46. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Securities
Debt Ratio
Cost-benefit Constraint
Owner Investment
47. Journal entries that affect at least three accounts.
Statement of Owner's Equity
Time Period Assumptions
Account
Compound Journal Entries
48. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Operating Cycle
Natural Business Years
Conceptual Framework
Double Entry Accounting
49. Individuals or organizations that owe money.
Owner Withdrawals
Financial Accounting Standards Board
Fiscal Year
Debtors
50. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Credit
Temporary Accounts
Expanded Accounting Equation
Ledger