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. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Unclassified Balance Sheets
External Users
Current Ratio
Full Disclosure Principle
2. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Classified Balance Sheet
Accounting Period
Common Stock
Unearned Revenue
3. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
Accounting Period
Matching Principle
Straight-line Depreciation Method
Matching Principle (or Expense Recognition Principle)
4. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Shares
Sarbanes-Oxley Act (SOX)
Conceptual Framework
Passive Income
5. Items paid for in advance of receiving their benefits. Classified as assets.
Expense Recognition Principle
IRA (Individual Retirement Account)
Prepaid Expenses
Long Term Investments
6. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Deficit
Ethical Dilemma
Cost-benefit Constraint
Bookkeeping
7. Journal entries that affect at least three accounts.
Compound Journal Entries
Risk
T Account
International Financial Reporting Standards
8. 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.
Accounting Period
Stockholders
Ponzi Scheme
Shareholders
9. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Accounting Cycle
Corporation
Common Stock
NASDAQ
10. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.
Risk
Reversing Entries
Cash Basis Accounting
Compound Journal Entries
11. The money left over when income exceeds expenditure.
T Account
Varaiable Expense
Accounting Equation
Surplus
12. Principle that assumes transactions and events can be expressed in money units.
Long Term Investments
IRA (Individual Retirement Account)
Assets
Monetary Unit Assumption
13. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Accrued Expenses
Owner Withdrawals
Expanded Accounting Equation
Work Sheet
14. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Accounting Period
Securities
IRA (Individual Retirement Account)
SEC (Securites and Exchange Commision)
15. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Secured Loan
Statement of Owner's Equity
Audit
Working Papers
16. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Accrued Revenues
Permanent Accounts
Business Entity Assumption
Chart of Accounts
17. Uncertainty about expected return.
Risk
Materiality Constraint
CD (Certificate of Deposit)
NYSE (New York Stock Exchange)
18. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Secured Loan
IRA (Individual Retirement Account)
Post Closing Trial Balance
Corporation
19. 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.
Assets
Federal Reserve System
Matching Principle (or Expense Recognition Principle)
Common Stock
20. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Liabilities
Trial balance
Partnership Agreement
Bookkeeping
21. The first time a company sells shares of its stock to the public.
IPO
Ponzi Scheme
Corporations
Classified Balance Sheet
22. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Bailout
Risk Tolerance
Accounting Period
Expanded Accounting Equation
23. Goals that are specific - measurable - attainable - realistic - and time bound.
Ethical Dilemma
SMART Goal
Bailout
T Account
24. Income that is available after all of the essential financial commitments have been paid.
Discretionary Income
Going-concern Assumptions
CD (Certificate of Deposit)
Assets
25. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Trial balance
Partnership
Shares
Business Entity Assumption
26. 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.
Chart of Accounts
Corporations
Current Liabilities
Bonds
27. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Assets
Events
Cash Basis Accounting
Return on Assets
28. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Securities
Contra Account
Statement of Owner's Equity
Limited Liability Corporation
29. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
International Financial Reporting Standards
Time Period Assumptions
Accrued Revenues
Unearned Revenues
30. Owners of a corporation who usually receive dividends. Also called stockholders.
IPO
Auditors
Debit
Shareholders
31. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Revenues
Unclassified Balance Sheets
Financial Accounting Standards Board
Liabilities
32. Outflows or using up of assets as part of operations of business to generate sales.
Generally Accepted Accounting Principles
Expenses
Adjusted Trial Balance
Secured Loan
33. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Fiscal Year
Unsecured Loan
Journal
Financial Accounting Standards Board
34. Gross increase in equity from a company's business activities that earn income.
IRA (Individual Retirement Account)
Portfolio Income
Revenues
Deficit
35. Loaning or giving money to a business in orer to save it from bankruptcy.
SEC (Securites and Exchange Commision)
Internal users
Debt Ratio
Bailout
36. Persons using accounting information who are not directly involved in running the organization.
Common Stock
Acquisition
Closing process
External Users
37. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Trial balance
Matching Principle (or Expense Recognition Principle)
Compound Journal Entries
Annual Financial Statements
38. The combining of two or more comapnies into one larger company.
Mergers
Secured Loan
Matching Principle
Events
39. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Time Period Assumptions
Accounting Period
Accounting Equation
Classified Balance Sheet
40. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Sarbanes-Oxley Act (SOX)
Accrued Expenses
Expense Recognition Principle
Adjusted Trial Balance
41. Length of time covered by financial statements; also called reporting period.
Book Value
Contra Account
Accounting Period
Work Sheet
42. 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.
Revenues
Adjusting Entry
Surplus
Bonds
43. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Time Period Assumptions
Working Papers
Going-concern Assumptions
Secured Loan
44. Tool used to show the effects of transactions and events on individual accounts.
T Account
Internal transactions
International Financial Reporting Standards
Expense Recognition Principle
45. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).
Income Summary
Time Period Assumptions
Reversing Entries
Stockholders
46. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Ethics
Long Term Liabilities
Business Entity Assumption
Partnership
47. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
T Account
Equity
Full Disclosure Principle
Stock
48. Statements that show the effect of proposed transactions and events as if they had occurred.
T Account
Closing process
Accounting
Pro Forma Financial Statement
49. Business owned by two or more people.
Partnership
Book Value
Corporations
Accounting
50. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Matching Principle (or Expense Recognition Principle)
Income Statement
Cash Basis Accounting
Risk Tolerance
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
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests