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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. Income that is available after all of the essential financial commitments have been paid.
Posting
Liabilities
Matching Principle (or Expense Recognition Principle)
Discretionary Income
2. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Contra Account
Accounting Period
Owner Withdrawals
Pro Forma Financial Statement
3. Accounting information is based on cost with potential subsequent adjustments to fair value.
Securities and Exchange Commission
Partnership Agreement
Measurement Principle
Trial balance
4. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Closing Entries
Unsecured Loan
Auditors
Deficit
5. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Audit
Unearned Revenue
Depreciation
Owner Investment
6. Uncertainty about expected return.
Expenses
Matching Principle (or Expense Recognition Principle)
Debit
Risk
7. 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.
Unsecured Loan
Deficit
NYSE (New York Stock Exchange)
Time Period Assumptions
8. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Equity
Adjusting Entry
Deficit
Financial Accounting Standards Board
9. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Generally Accepted Accounting Principles
Managerial Accounting
Adjusted Trial Balance
Fiscal Year
10. Process of transferring journal entry information to the ledger; computerized systems automate this process.
International Financial Reporting Standards
Posting Reference Column
Events
Posting
11. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Classified Balance Sheet
Events
Accounting Period
Acquisition
12. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
Expenses
International Accounting Standards Board
Cost Principle
SMART Goal
13. 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.
Securities
Reversing Entries
Statement of Cash Flows
Securities and Exchange Commission
14. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Accounting Equation
Accrued Expenses
Managerial Accounting
Straight-line Depreciation Method
15. Monies (or sums of money) received from an investment; often in percent form.
IRA (Individual Retirement Account)
Discretionary Income
Adjusted Trial Balance
Return
16. Process of recording transactions in a journal.
Interim Financial Statements
Journalizing
Posting
Credit
17. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Ethical Dilemma
Ethics
Stock
Statement of Owner's Equity
18. A corporation's basic ownership share.
Common Stock
Temporary Accounts
Shareholders
Bailout
19. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Income Statement
Fiscal Year
Time Period Assumptions
Debt Ratio
20. Goals that are specific - measurable - attainable - realistic - and time bound.
Recordkeeping
SMART Goal
Events
Contra Account
21. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Ponzi Scheme
Equity
Permanent Accounts
Temporary Accounts
22. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Corporation
Partnership Agreement
Events
Intangible assets
23. Assets pulled out of the business by the owner.
Owner Withdrawals
Ponzi Scheme
Bailout
Stockholders
24. 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
Securities and Exchange Commission
Generally Accepted Accounting Principles
Sarbanes-Oxley Act (SOX)
Net Income
25. Outflows or using up of assets as part of operations of business to generate sales.
Accounting Cycle
Expenses
Stockholders
Conceptual Framework
26. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Credit
Pro Forma Financial Statement
Expense Recognition Principle
Journalizing
27. Statements that show the effect of proposed transactions and events as if they had occurred.
NYSE (New York Stock Exchange)
Accrued Revenues
Revenue Recognition Principle
Pro Forma Financial Statement
28. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
SMART Goal
Cash Basis Accounting
Financial Accounting
Natural Business Years
29. Independent group of full-time members responsible for setting accounting rules.
Secured Loan
Financial Accounting Standards Board
Cost Principle
Plant Assets
30. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Posting
Liabilities
Long Term Investments
Auditors
31. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Bookkeeping
Sarbanes-Oxley Act (SOX)
Fiscal Year
Expanded Accounting Equation
32. The first time a company sells shares of its stock to the public.
IPO
Common Stock
Debtors
SMART Goal
33. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Income Summary
Current Assets
Present Value
Surplus
34. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Adjusted Trial Balance
Secured Loan
Common Stock
Assets
35. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Operating Cycle
Trial balance
Corporations
Interim Financial Statements
36. All purpose journal for recording the debits and credits of transactions and events.
General Journal
Equity
Owner Investment
Audit
37. The money left over when income exceeds expenditure.
Recordkeeping
Surplus
Varaiable Expense
Accrued Revenues
38. Loaning or giving money to a business in orer to save it from bankruptcy.
Fiscal Year
Generally Accepted Accounting Principles
Bailout
Long Term Investments
39. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Unclassified Balance Sheets
Interim Financial Statements
Unearned Revenues
Long Term Investments
40. 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.
Trial balance
Common Stock
Generally Accepted Accounting Principles
Operating Cycle
41. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Passive Income
Posting Reference Column
Securities
Partnership Agreement
42. 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.
Stockholders
Bookkeeping
Sarbanes-Oxley Act (SOX)
Liabilities
43. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Bailout
Account
Unearned Revenue
Internal transactions
44. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Return
Time Period Assumptions
Risk Tolerance
Internal users
45. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Closing Entries
Portfolio Income
Accounting Equation
Adjusted Trial Balance
46. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb
Recordkeeping
Secured Loan
Shareholders
NASDAQ
47. The principle prescribing that revenue is recognized when earned.
Net Loss
Temporary Accounts
Trial balance
Revenue Recognition Principle
48. 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).
Current Ratio
Internal transactions
Revenues
Closing Entries
49. Rules that specify acceptable accounting practices.
Adjusting Entry
Statement of Owner's Equity
Money Market Account
Generally Accepted Accounting Principles
50. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Permanent Accounts
Liabilities
Classified Balance Sheet
Book Value