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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. Business owned by two or more people.
Working Papers
Pro Forma Financial Statement
Trial balance
Partnership
2. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Debtors
Book Value
Plant Assets
NYSE (New York Stock Exchange)
3. Expenses that remain the same regardless of the circumstances.
Owner - Capital
CD (Certificate of Deposit)
Closing Entries
Fixed Expense
4. 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.
Corporation
Ponzi Scheme
Audit
Acquisition
5. 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.
NASDAQ
Money Market Account
International Accounting Standards Board
Bonds
6. 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.
Internal transactions
Reversing Entries
Trial balance
Statement of Cash Flows
7. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Mergers
Accounting Cycle
Accounting
SMART Goal
8. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Journal
Varaiable Expense
Time Period Assumptions
Account
9. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Pro Forma Financial Statement
Acquisition
Shareholders
Current Ratio
10. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an
Accounting Cycle
Working Papers
Preferred Stock
NYSE (New York Stock Exchange)
11. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Classified Balance Sheet
Posting
IPO
Risk Tolerance
12. Individuals or organizations entitled to receive payments
Monetary Unit Assumption
Time Period Assumptions
Creditors
Working Papers
13. Independent group of full-time members responsible for setting accounting rules.
Accrual Basis Accounting
Financial Accounting Standards Board
Matching Principle
Corporation
14. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Current Ratio
Intangible assets
Mergers
Limited Liability Corporation
15. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Long Term Investments
Common Stock
SMART Goal
Auditors
16. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Preferred Stock
Current Ratio
Credit
Equity
17. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Current Liabilities
Posting
T Account
Materiality Constraint
18. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Debit
Account
Shares
Balance Sheet
19. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Long Term Investments
Securities
Time Period Assumptions
Unclassified Balance Sheets
20. Happenings that both affect an organization's financial position and can be reliably measured.
Current Assets
Cost Principle
Events
Partnership
21. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Ethical Dilemma
Bailout
Operating Cycle
Debtors
22. 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.
Sole Propietorship
Auditors
Credit
NYSE (New York Stock Exchange)
23. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
External Transactions
Ethics
Temporary Accounts
Prepaid Expenses
24. Exchanges of economic value between one entity and another entity.
Chart of Accounts
Varaiable Expense
Bonds
External Transactions
25. 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).
Permanent Accounts
Return
Closing Entries
Measurement Principle
26. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Current Assets
Natural Business Years
Recordkeeping
Partnership
27. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
Common Stock
Financial Accounting
Owner - Capital
International Accounting Standards Board
28. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Materiality Constraint
Classified Balance Sheet
Managerial Accounting
Internal users
29. Principle that assumes transactions and events can be expressed in money units.
Ledger
Book Value
Monetary Unit Assumption
Debit
30. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Long Term Liabilities
Classified Balance Sheet
Partnership Agreement
Debt Ratio
31. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.
Expense Recognition Principle
Revenue Recognition Principle
Preferred Stock
Classified Balance Sheet
32. Rules that specify acceptable accounting practices.
Deficit
Credit
Balance Sheet
Generally Accepted Accounting Principles
33. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Shareholders
Accrued Expenses
Preferred Stock
Working Papers
34. 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.
Pro Forma Financial Statement
Liabilities
International Financial Reporting Standards
Unadjusted Trial Balance
35. Gross increase in equity from a company's business activities that earn income.
Posting
Preferred Stock
Revenues
Statement of Cash Flows
36. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
NYSE (New York Stock Exchange)
Ethics
Full Disclosure Principle
Straight-line Depreciation Method
37. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Shareholders
Going-concern Assumptions
Work Sheet
Cost Principle
38. 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
Financial Accounting Standards Board
Unadjusted Trial Balance
Contra Account
39. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Bailout
Unadjusted Trial Balance
Interim Financial Statements
Income Summary
40. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Full Disclosure Principle
Debtors
Accounting Period
Straight-line Depreciation Method
41. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Natural Business Years
Securities
Accounting Period
Liabilities
42. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Secured Loan
External Users
Audit
Closing Entries
43. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.
SEC (Securites and Exchange Commision)
Time Period Assumptions
Common Stock
International Accounting Standards Board
44. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Unsecured Loan
Shares
Time Period Assumptions
Bailout
45. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Accrued Expenses
Return on Assets
Profit Margin
T Account
46. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Recordkeeping
Time Period Assumptions
Accounting Equation
Partnership Agreement
47. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Long Term Liabilities
Time Period Assumptions
Acquisition
Shares
48. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Stockholders
Unadjusted Trial Balance
Accrued Expenses
Accounting
49. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Plant Assets
Common Stock
Creditors
Matching Principle (or Expense Recognition Principle)
50. Process of recording transactions in a journal.
Current Assets
Liabilities
Interim Financial Statements
Journalizing