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. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






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






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






4. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






5. 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


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






7. Balance sheet that broadly groups assets - liabilities - and equity accounts.






8. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






9. Business owned by one person that is not organized as a corporation.






10. Length of time covered by financial statements; also called reporting period.






11. 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.






12. Principle that assumes transactions and events can be expressed in money units.






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






14. Outflows or using up of assets as part of operations of business to generate sales.






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






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






17. Owners of a corporation who usually receive dividends. Also called stockholders.






18. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






19. Assets put into the business by the owner.






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






21. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






22. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






23. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






24. Activities within an organization that can affect the accounting equation.






25. A written framework to guide the development - preparation - and interpretation of financial accounting information.






26. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






27. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






28. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






29. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






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






31. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






32. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






33. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






34. 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.






35. Income that is available after all of the essential financial commitments have been paid.






36. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






38. Business owned by two or more people.






39. Owners of a corporation who usually receive dividends. Also called shareholders.






40. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






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






42. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






43. Rules that specify acceptable accounting practices.






44. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






45. Items paid for in advance of receiving their benefits. Classified as assets.






46. 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.






47. 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






48. 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).






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






50. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.