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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. The money left over when income exceeds expenditure.
Temporary Accounts
Surplus
External Users
Annual Financial Statements
2. Principle that assumes transactions and events can be expressed in money units.
Monetary Unit Assumption
Sole Propietorship
Expense Recognition Principle
Bonds
3. Uncertainty about expected return.
Working Papers
Measurement Principle
Risk
Securities and Exchange Commission
4. The first time a company sells shares of its stock to the public.
Federal Reserve System
Compound Journal Entries
IPO
Bookkeeping
5. Balance sheet that broadly groups assets - liabilities - and equity accounts.
CD (Certificate of Deposit)
Managerial Accounting
Unclassified Balance Sheets
Monetary Unit Assumption
6. The twelve month period that ends when a company's sales activities are at their lowest point.
Natural Business Years
Post Closing Trial Balance
Return
Current Ratio
7. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Natural Business Years
Permanent Accounts
Expenses
Return on Assets
8. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Stock
External Transactions
International Financial Reporting Standards
Ethics
9. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Long Term Investments
Balance Sheet
Monetary Unit Assumption
Generally Accepted Accounting Principles
10. 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)
Expanded Accounting Equation
Financial Accounting Standards Board
Depreciation
11. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Revenue Recognition Principle
Partnership
Return on Assets
CD (Certificate of Deposit)
12. 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.
Interim Financial Statements
Bonds
External Users
Adjusted Trial Balance
13. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Bookkeeping
Source Documents
Income Statement
Compound Journal Entries
14. A loan that is backed by collateral such as cars - houses - or other assets.
SEC (Securites and Exchange Commision)
Secured Loan
Full Disclosure Principle
Unearned Revenues
15. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Cost-benefit Constraint
Credit
Passive Income
Prepaid Expenses
16. 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.
Deficit
International Accounting Standards Board
Common Stock
Accounting Cycle
17. Items paid for in advance of receiving their benefits. Classified as assets.
Statement of Owner's Equity
Prepaid Expenses
Equity
Common Stock
18. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
External Users
Matching Principle (or Expense Recognition Principle)
Assets
Long Term Liabilities
19. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Limited Liability Corporation
Business Entity Assumption
Closing Entries
Long Term Investments
20. Accounting information is based on cost with potential subsequent adjustments to fair value.
Ponzi Scheme
Depreciation
General Journal
Measurement Principle
21. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Accounting
Accrued Expenses
Common Stock
Credit
22. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Debt Ratio
Partnership
Balance Column Account
Shareholders
23. Exchanges of economic value between one entity and another entity.
Events
External Transactions
Surplus
Accrued Expenses
24. Assets put into the business by the owner.
Income Statement
Owner Investment
Risk
SEC (Securites and Exchange Commision)
25. 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
Debt Ratio
International Financial Reporting Standards
Sarbanes-Oxley Act (SOX)
Return on Assets
26. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Common Stock
Recordkeeping
Trial balance
Compound Journal Entries
27. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Natural Business Years
Cost Principle
IPO
External Users
28. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Business Entity Assumption
NASDAQ
Book Value
Plant Assets
29. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Closing Entries
Bailout
Stock
Statement of Owner's Equity
30. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Balance Column Account
Return on Assets
Journalizing
Matching Principle (or Expense Recognition Principle)
31. Independent group of full-time members responsible for setting accounting rules.
Partnership Agreement
Securities
Financial Accounting Standards Board
Surplus
32. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Post Closing Trial Balance
Monetary Unit Assumption
Contra Account
Fiscal Year
33. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Contra Account
Going-concern Assumptions
Measurement Principle
Full Disclosure Principle
34. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Partnership
Current Ratio
Reversing Entries
Cash Basis Accounting
35. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Depreciation
Preferred Stock
Long Term Investments
Securities and Exchange Commission
36. A corporation's basic ownership share.
Double Entry Accounting
Return on Assets
Common Stock
Book Value
37. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
SEC (Securites and Exchange Commision)
Accrual Basis Accounting
Bonds
Balance Column Account
38. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Shares
Income Statement
Preferred Stock
Current Liabilities
39. 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.
Going-concern Assumptions
Federal Reserve System
Balance Sheet
Liabilities
40. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Posting Reference Column
Conceptual Framework
Owner - Capital
Expenses
41. Excess of expenses over revenues for a period.
Conceptual Framework
Net Loss
Accounting Equation
Unsecured Loan
42. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Fixed Expense
Posting
Double Entry Accounting
Expanded Accounting Equation
43. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Expenses
Current Assets
Profit Margin
Sarbanes-Oxley Act (SOX)
44. Monies (or sums of money) received from an investment; often in percent form.
Debit
Return
Journal
Shareholders
45. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Business Entity Assumption
Account
Audit
Revenue Recognition Principle
46. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
External Users
Unearned Revenues
International Accounting Standards Board
Audit
47. Gross increase in equity from a company's business activities that earn income.
Securities
Internal transactions
Revenues
Accounting Cycle
48. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Partnership
Posting Reference Column
Unearned Revenue
Debt Ratio
49. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Cash Basis Accounting
Surplus
Ponzi Scheme
Journal
50. The combining of two or more comapnies into one larger company.
Equity
Mergers
Statement of Cash Flows
Natural Business Years