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Test your basic knowledge |
DSST Principles Of Finance
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Subjects
:
dsst
,
business-skills
Instructions:
Answer 50 questions in 15 minutes.
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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
Corporation
Sarbanes-Oxley Act (SOX)
NASDAQ
Account
2. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Common Stock
Current Assets
Posting
Time Period Assumptions
3. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Interim Financial Statements
Debt Ratio
Current Ratio
Risk
4. Area of accounting aimed mainly at serving external users.
Work Sheet
Financial Accounting
Full Disclosure Principle
Intangible assets
5. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Straight-line Depreciation Method
Ledger
Temporary Accounts
Classified Balance Sheet
6. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Common Stock
Net Income
Audit
Fixed Expense
7. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Interim Financial Statements
Debit
Securities
Common Stock
8. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Current Liabilities
NYSE (New York Stock Exchange)
External Transactions
Operating Cycle
9. 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.
Ethical Dilemma
Owner - Capital
Depreciation
General Journal
10. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Debt Ratio
Working Papers
Sole Proprietorship
Cost Principle
11. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Recordkeeping
Balance Sheet
Journal
Unsecured Loan
12. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Revenue Recognition Principle
Surplus
Long Term Liabilities
Current Liabilities
13. Monies (or sums of money) received from an investment; often in percent form.
Permanent Accounts
NASDAQ
Return
General Journal
14. Persons using accounting information who are not directly involved in running the organization.
Debtors
Accrued Revenues
External Users
Unsecured Loan
15. Happenings that both affect an organization's financial position and can be reliably measured.
Events
Operating Cycle
Risk Tolerance
Work Sheet
16. Owners of a corporation who usually receive dividends. Also called shareholders.
Stockholders
Straight-line Depreciation Method
Expanded Accounting Equation
Corporation
17. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Current Liabilities
NYSE (New York Stock Exchange)
Varaiable Expense
Fiscal Year
18. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
Account
Straight-line Depreciation Method
Current Liabilities
Present Value
19. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Common Stock
Permanent Accounts
Income Summary
Sole Proprietorship
20. 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.
Risk Tolerance
Fixed Expense
Bonds
Mergers
21. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Accounting Equation
Full Disclosure Principle
Plant Assets
Source Documents
22. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Journal
Ethical Dilemma
Events
Financial Accounting
23. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Operating Cycle
Time Period Assumptions
Prepaid Expenses
Working Papers
24. Business owned by one person that is not organized as a corporation.
Long Term Investments
Unearned Revenue
Sole Proprietorship
NASDAQ
25. Process of recording transactions in a journal.
Reversing Entries
Materiality Constraint
Journalizing
Cost Principle
26. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Unsecured Loan
Classified Balance Sheet
NASDAQ
Matching Principle
27. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Sole Proprietorship
Bookkeeping
Time Period Assumptions
Credit
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.
Reversing Entries
NYSE (New York Stock Exchange)
Limited Liability Corporation
Revenue Recognition Principle
29. Income from investments - including dividends - interest - or the sale of a property.
Portfolio Income
Return
Long Term Liabilities
Accounting
30. 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.
NASDAQ
Liabilities
Sarbanes-Oxley Act (SOX)
Audit
31. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Debt Ratio
Ethics
Cash Basis Accounting
Compound Journal Entries
32. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Owner - Capital
Managerial Accounting
Post Closing Trial Balance
Intangible assets
33. Principle that assumes transactions and events can be expressed in money units.
Journalizing
Balance Column Account
Monetary Unit Assumption
Ledger
34. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Assets
Deficit
Partnership
Passive Income
35. A tax deferred account that allows individuals to plan for their retirement.
Partnership
Internal users
IRA (Individual Retirement Account)
IPO
36. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Interim Financial Statements
Balance Column Account
Profit Margin
Return on Assets
37. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Intangible assets
Materiality Constraint
Owner Investment
Business Entity Assumption
38. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
Stock
International Accounting Standards Board
Long Term Investments
Straight-line Depreciation Method
39. Expenses that remain the same regardless of the circumstances.
Bookkeeping
Net Loss
Ledger
Fixed Expense
40. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Time Period Assumptions
Adjusted Trial Balance
Risk
Current Ratio
41. Assets pulled out of the business by the owner.
Acquisition
Unearned Revenues
Owner Withdrawals
Journalizing
42. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Accounting
Portfolio Income
Conceptual Framework
IRA (Individual Retirement Account)
43. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Deficit
Accounting Cycle
Expense Recognition Principle
Varaiable Expense
44. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Accounting Period
Securities
Intangible assets
Cash Basis Accounting
45. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Accounting Cycle
Unadjusted Trial Balance
Owner - Capital
Surplus
46. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Assets
Book Value
Cost-benefit Constraint
Return on Assets
47. Business owned by a single person.
Sole Propietorship
SMART Goal
Stockholders
Ponzi Scheme
48. The value of a future cash steam discounted at the appropriate market interest rate.
Profit Margin
Return on Assets
Present Value
Portfolio Income
49. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Acquisition
Equity
External Transactions
Risk
50. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Work Sheet
Prepaid Expenses
Reversing Entries
Accounting Cycle
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