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






2. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






3. 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).






4. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






5. Tool used to show the effects of transactions and events on individual accounts.






6. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






7. The principle prescribing that revenue is recognized when earned.






8. Individuals or organizations entitled to receive payments






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






10. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






11. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






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






13. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






14. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






15. 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.






16. Journal entries that affect at least three accounts.






17. Gross increase in equity from a company's business activities that earn income.






18. 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.






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






20. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






21. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






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






23. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






24. Business owned by a single person.






25. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






26. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






27. 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






28. Persons using accounting information who are not directly involved in running the organization.






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






30. The first time a company sells shares of its stock to the public.






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






32. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






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






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






35. Income from investments - including dividends - interest - or the sale of a property.






36. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






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






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






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






40. 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.






41. Business owned by two or more people.






42. 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.






43. Assets put into the business by the owner.






44. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






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






46. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






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






48. Happenings that both affect an organization's financial position and can be reliably measured.






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






50. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.