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. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






2. Journal entries that affect at least three accounts.






3. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






4. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






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






6. Persons using accounting information who are directly involved in managing the organization.






7. 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.






8. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






9. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






10. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






11. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






12. 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.






13. A written framework to guide the development - preparation - and interpretation of financial accounting information.






14. An expense that changes from period to perio - such as food or gasoline costs.






15. Independent group of full-time members responsible for setting accounting rules.






16. Area of accounting aimed mainly at serving external users.






17. Goals that are specific - measurable - attainable - realistic - and time bound.






18. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






19. 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).






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






21. Statements that show the effect of proposed transactions and events as if they had occurred.






22. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






23. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






24. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






26. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






27. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






28. 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.






29. Individuals or organizations that owe money.






30. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






31. Items paid for in advance of receiving their benefits. Classified as assets.






32. Business owned by a single person.






33. Business owned by two or more people.






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






35. 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.






36. The twelve month period that ends when a company's sales activities are at their lowest point.






37. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






38. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






39. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






40. Business owned by one person that is not organized as a corporation.






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






42. Owners of a corporation who usually receive dividends. Also called stockholders.






43. Exchanges of economic value between one entity and another entity.






44. Uncertainty about expected return.






45. Owners of a corporation who usually receive dividends. Also called shareholders.






46. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.






47. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






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






49. A legal entity that is seperate from its owners.






50. List of accounts used by a company' includes and identification number for each account.