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






2. Expenses that remain the same regardless of the circumstances.






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






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






5. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






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






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






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






9. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






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






11. 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






12. Process of recording transactions in a journal.






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






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






15. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






16. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






17. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






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






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






20. Loaning or giving money to a business in orer to save it from bankruptcy.






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






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






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






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






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






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






27. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






28. 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.






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






30. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






31. 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.






32. Report of changes in equity over a period; adjusted for increases and for decreases.

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






34. All purpose journal for recording the debits and credits of transactions and events.






35. Principle that assumes transactions and events can be expressed in money units.






36. Journal entries that affect at least three accounts.






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






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






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






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






41. Excess of expenses over revenues for a period.






42. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






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






44. Individuals or organizations entitled to receive payments






45. 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.






46. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






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






48. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






49. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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