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. 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
NASDAQ
Matching Principle
Source Documents
Book Value
2. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
IPO
Federal Reserve System
Source Documents
Mergers
3. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Stock
Surplus
Long Term Liabilities
International Financial Reporting Standards
4. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
International Financial Reporting Standards
Limited Liability Corporation
Federal Reserve System
Recordkeeping
5. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Stock
Working Papers
Internal users
SMART Goal
6. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Managerial Accounting
Temporary Accounts
Common Stock
Permanent Accounts
7. Income from investments - including dividends - interest - or the sale of a property.
External Users
Portfolio Income
Equity
Plant Assets
8. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Pro Forma Financial Statement
General Journal
Stockholders
Annual Financial Statements
9. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Expense Recognition Principle
Balance Column Account
Managerial Accounting
Accounting Period
10. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Stock
Long Term Liabilities
Surplus
Going-concern Assumptions
11. Owners of a corporation who usually receive dividends. Also called shareholders.
Stockholders
Contra Account
Temporary Accounts
Monetary Unit Assumption
12. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Accrued Expenses
Debit
Unearned Revenue
Adjusted Trial Balance
13. Report of changes in equity over a period; adjusted for increases and for decreases.
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
14. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Chart of Accounts
Unearned Revenue
Conceptual Framework
Owner Investment
15. Assets pulled out of the business by the owner.
Owner Withdrawals
Cost-benefit Constraint
Accrued Expenses
Expense Recognition Principle
16. 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.
Net Loss
Owner - Capital
Surplus
SEC (Securites and Exchange Commision)
17. Activities within an organization that can affect the accounting equation.
Sole Proprietorship
Debtors
Measurement Principle
Internal transactions
18. A loan that is backed by collateral such as cars - houses - or other assets.
Measurement Principle
Corporations
Assets
Secured Loan
19. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Managerial Accounting
Unearned Revenues
Current Ratio
Common Stock
20. 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.
NASDAQ
Owner Investment
Federal Reserve System
Account
21. 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.
Preferred Stock
Corporation
Expanded Accounting Equation
Expense Recognition Principle
22. Monies (or sums of money) received from an investment; often in percent form.
Compound Journal Entries
Return
Matching Principle
Permanent Accounts
23. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Income Statement
Equity
Acquisition
Current Assets
24. Exchanges of economic value between one entity and another entity.
Closing Entries
Pro Forma Financial Statement
External Transactions
Sole Propietorship
25. An expense that changes from period to perio - such as food or gasoline costs.
Varaiable Expense
Time Period Assumptions
Common Stock
Risk
26. A legal entity that is seperate from its owners.
Corporations
Account
Owner - Capital
International Financial Reporting Standards
27. 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.
Post Closing Trial Balance
Equity
Risk Tolerance
Accounting Equation
28. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Closing process
Owner Withdrawals
Current Ratio
Equity
29. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Posting
Securities
Income Summary
Post Closing Trial Balance
30. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Bonds
Shares
Assets
Fiscal Year
31. Individuals hired to review financial reports and information systems of organizations.
Liabilities
Acquisition
Auditors
Limited Liability Corporation
32. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
External Users
Straight-line Depreciation Method
Revenues
Interim Financial Statements
33. 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).
Preferred Stock
Internal users
Income Summary
Ethical Dilemma
34. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Current Liabilities
Portfolio Income
Mergers
External Users
35. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Double Entry Accounting
Annual Financial Statements
Risk Tolerance
Revenue Recognition Principle
36. 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.
CD (Certificate of Deposit)
IRA (Individual Retirement Account)
Liabilities
Temporary Accounts
37. Individuals or organizations that owe money.
Debtors
Statement of Owner's Equity
Events
Intangible assets
38. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Business Entity Assumption
Unadjusted Trial Balance
Unclassified Balance Sheets
Expenses
39. Process of recording transactions in a journal.
Managerial Accounting
Assets
Journalizing
Net Loss
40. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Time Period Assumptions
Ledger
Owner - Capital
Passive Income
41. Income that is available after all of the essential financial commitments have been paid.
Generally Accepted Accounting Principles
CD (Certificate of Deposit)
Auditors
Discretionary Income
42. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Acquisition
Trial balance
Expanded Accounting Equation
Equity
43. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Net Income
Limited Liability Corporation
Posting
Accounting Cycle
44. 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.
NYSE (New York Stock Exchange)
Unclassified Balance Sheets
Federal Reserve System
Ledger
45. 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.
Statement of Cash Flows
Account
Bonds
Bookkeeping
46. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
Revenues
CD (Certificate of Deposit)
Partnership Agreement
Post Closing Trial Balance
47. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Limited Liability Corporation
Permanent Accounts
External Transactions
Intangible assets
48. 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
Stock
Preferred Stock
Stockholders
Measurement Principle
49. 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.
Intangible assets
Journal
Ponzi Scheme
Preferred Stock
50. Excess of expenses over revenues for a period.
Generally Accepted Accounting Principles
Net Loss
Accounting
Unearned Revenue