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. Owners of a corporation who usually receive dividends. Also called stockholders.
Common Stock
Materiality Constraint
Money Market Account
Shareholders
2. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Posting
Acquisition
Unsecured Loan
Accrued Expenses
3. Length of time covered by financial statements; also called reporting period.
IPO
Preferred Stock
Accounting Period
Deficit
4. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Time Period Assumptions
Money Market Account
Risk Tolerance
Passive Income
5. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Accrued Revenues
Income Statement
Passive Income
International Financial Reporting Standards
6. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Audit
Accounting Cycle
Profit Margin
External Transactions
7. A tax deferred account that allows individuals to plan for their retirement.
Income Statement
IRA (Individual Retirement Account)
Mergers
Working Papers
8. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Measurement Principle
Temporary Accounts
Matching Principle (or Expense Recognition Principle)
Partnership Agreement
9. 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
Going-concern Assumptions
Accounting
Sarbanes-Oxley Act (SOX)
Auditors
10. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Statement of Cash Flows
Plant Assets
Classified Balance Sheet
Ponzi Scheme
11. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Account
Current Ratio
Internal transactions
Financial Accounting Standards Board
12. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Income Statement
Business Entity Assumption
Passive Income
NASDAQ
13. The money left over when income exceeds expenditure.
Equity
Limited Liability Corporation
Surplus
Post Closing Trial Balance
14. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Audit
Financial Accounting Standards Board
Contra Account
Interim Financial Statements
15. 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.
Compound Journal Entries
Ponzi Scheme
Mergers
Posting Reference Column
16. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Journal
Book Value
Debt Ratio
Net Loss
17. A loan that is backed by collateral such as cars - houses - or other assets.
Accounting Period
Liabilities
Operating Cycle
Secured Loan
18. Tool used to show the effects of transactions and events on individual accounts.
Chart of Accounts
Partnership Agreement
Net Income
T Account
19. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Materiality Constraint
Interim Financial Statements
Assets
Net Income
20. 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.
Corporations
Expenses
Owner - Capital
Account
21. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
SEC (Securites and Exchange Commision)
Cash Basis Accounting
Accounting Cycle
Varaiable Expense
22. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
CD (Certificate of Deposit)
Stock
Current Liabilities
Bookkeeping
23. Independent group of full-time members responsible for setting accounting rules.
Financial Accounting Standards Board
Mergers
Current Liabilities
Compound Journal Entries
24. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Discretionary Income
Bonds
Deficit
Account Balance
25. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Mergers
Federal Reserve System
Closing process
Time Period Assumptions
26. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Going-concern Assumptions
Cash Basis Accounting
Interim Financial Statements
Owner Withdrawals
27. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
International Accounting Standards Board
Ethical Dilemma
Partnership Agreement
Accounting Cycle
28. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Unsecured Loan
Permanent Accounts
Statement of Cash Flows
Generally Accepted Accounting Principles
29. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Straight-line Depreciation Method
Bailout
Long Term Liabilities
Partnership
30. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Ethics
Measurement Principle
Ponzi Scheme
Profit Margin
31. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Preferred Stock
Going-concern Assumptions
Debtors
Debt Ratio
32. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Accounting Period
Balance Sheet
Cost-benefit Constraint
Unearned Revenue
33. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
International Financial Reporting Standards
Permanent Accounts
Cost-benefit Constraint
Money Market Account
34. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Preferred Stock
Book Value
Partnership
Recordkeeping
35. Owners of a corporation who usually receive dividends. Also called shareholders.
Stockholders
Current Assets
Accrual Basis Accounting
Working Papers
36. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Current Assets
Adjusted Trial Balance
Natural Business Years
Acquisition
37. 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.
Expenses
Corporations
Reversing Entries
Classified Balance Sheet
38. Journal entries that affect at least three accounts.
Statement of Owner's Equity
Money Market Account
Going-concern Assumptions
Compound Journal Entries
39. Business owned by a single person.
Securities and Exchange Commission
Statement of Cash Flows
Internal transactions
Sole Propietorship
40. 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).
Debtors
Accrued Revenues
Unsecured Loan
Income Summary
41. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Partnership Agreement
Securities and Exchange Commission
Securities
Unadjusted Trial Balance
42. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Recordkeeping
Full Disclosure Principle
External Users
Creditors
43. The principle prescribing that revenue is recognized when earned.
Revenue Recognition Principle
T Account
Reversing Entries
Natural Business Years
44. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Accounting
Limited Liability Corporation
Going-concern Assumptions
Time Period Assumptions
45. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Return on Assets
Generally Accepted Accounting Principles
Journal
Bookkeeping
46. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Cost Principle
Partnership
Annual Financial Statements
Monetary Unit Assumption
47. Statements that show the effect of proposed transactions and events as if they had occurred.
Pro Forma Financial Statement
Expense Recognition Principle
Preferred Stock
Shareholders
48. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Assets
Fixed Expense
Account
Shares
49. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Compound Journal Entries
Conceptual Framework
Unearned Revenues
Income Summary
50. Record containing all accounts (with amounts) for a business.
Ledger
Recordkeeping
Classified Balance Sheet
Corporations