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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. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Compound Journal Entries
Trial balance
External Users
Cash Basis Accounting
2. Journal entries that affect at least three accounts.
Secured Loan
Compound Journal Entries
Depreciation
Expenses
3. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Equity
Limited Liability Corporation
Expanded Accounting Equation
Varaiable Expense
4. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Fiscal Year
Shares
Double Entry Accounting
Debtors
5. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Partnership
Natural Business Years
Intangible assets
Posting Reference Column
6. Persons using accounting information who are directly involved in managing the organization.
Ledger
IRA (Individual Retirement Account)
Secured Loan
Internal users
7. 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.
IRA (Individual Retirement Account)
Adjusting Entry
Cost Principle
Discretionary Income
8. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Unearned Revenue
Cash Basis Accounting
Materiality Constraint
Ledger
9. 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.
Bookkeeping
Liabilities
Materiality Constraint
Portfolio Income
10. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Liabilities
Closing process
Account Balance
Sole Propietorship
11. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Accounting Period
Shares
Double Entry Accounting
Revenue Recognition Principle
12. 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.
Secured Loan
Ponzi Scheme
Accrual Basis Accounting
Pro Forma Financial Statement
13. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Long Term Investments
Fixed Expense
Conceptual Framework
IRA (Individual Retirement Account)
14. An expense that changes from period to perio - such as food or gasoline costs.
Ethical Dilemma
Varaiable Expense
Unearned Revenue
Intangible assets
15. Independent group of full-time members responsible for setting accounting rules.
Surplus
CD (Certificate of Deposit)
Financial Accounting Standards Board
Present Value
16. Area of accounting aimed mainly at serving external users.
Unearned Revenue
Unclassified Balance Sheets
Posting
Financial Accounting
17. Goals that are specific - measurable - attainable - realistic - and time bound.
Stock
Federal Reserve System
SMART Goal
Securities
18. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Working Papers
Stockholders
Credit
Bailout
19. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).
Closing Entries
Conceptual Framework
Pro Forma Financial Statement
Unadjusted Trial Balance
20. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Business Entity Assumption
Mergers
Sole Propietorship
Unearned Revenue
21. Statements that show the effect of proposed transactions and events as if they had occurred.
SEC (Securites and Exchange Commision)
Ledger
Current Liabilities
Pro Forma Financial Statement
22. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Profit Margin
SMART Goal
Assets
External Transactions
23. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Debit
SMART Goal
Equity
Bonds
24. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Book Value
Account Balance
Ethical Dilemma
Monetary Unit Assumption
25. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Post Closing Trial Balance
Balance Column Account
Cost Principle
Sole Proprietorship
26. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Temporary Accounts
Current Assets
Common Stock
Securities and Exchange Commission
27. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Deficit
Prepaid Expenses
Secured Loan
Account
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.
NYSE (New York Stock Exchange)
Portfolio Income
Sole Propietorship
Annual Financial Statements
29. Individuals or organizations that owe money.
Debtors
Bonds
Working Papers
Annual Financial Statements
30. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Closing process
Internal transactions
Full Disclosure Principle
Adjusted Trial Balance
31. Items paid for in advance of receiving their benefits. Classified as assets.
Working Papers
Prepaid Expenses
Money Market Account
Expanded Accounting Equation
32. Business owned by a single person.
Surplus
Sole Propietorship
Owner Investment
Business Entity Assumption
33. Business owned by two or more people.
Fiscal Year
Long Term Liabilities
Partnership
Journalizing
34. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Book Value
Federal Reserve System
Fixed Expense
Expanded Accounting Equation
35. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.
Reversing Entries
Portfolio Income
IPO
Profit Margin
36. The twelve month period that ends when a company's sales activities are at their lowest point.
Natural Business Years
Measurement Principle
SMART Goal
Fiscal Year
37. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Accounting
Operating Cycle
Posting
Working Papers
38. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Passive Income
Managerial Accounting
Journalizing
Unadjusted Trial Balance
39. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Risk Tolerance
Long Term Investments
Balance Column Account
NASDAQ
40. Business owned by one person that is not organized as a corporation.
Revenues
Accrued Revenues
Natural Business Years
Sole Proprietorship
41. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Unearned Revenue
Adjusted Trial Balance
Equity
SEC (Securites and Exchange Commision)
42. Owners of a corporation who usually receive dividends. Also called stockholders.
Corporation
Federal Reserve System
Shareholders
Full Disclosure Principle
43. Exchanges of economic value between one entity and another entity.
Revenues
IRA (Individual Retirement Account)
External Transactions
Sole Propietorship
44. Uncertainty about expected return.
Going-concern Assumptions
Creditors
Corporations
Risk
45. Owners of a corporation who usually receive dividends. Also called shareholders.
Account Balance
Bookkeeping
Stockholders
IRA (Individual Retirement Account)
46. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.
Depreciation
Audit
International Financial Reporting Standards
Securities and Exchange Commission
47. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Cost Principle
Closing Entries
Contra Account
Depreciation
48. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Closing Entries
Unsecured Loan
Time Period Assumptions
Accounting Cycle
49. A legal entity that is seperate from its owners.
Accrued Revenues
NYSE (New York Stock Exchange)
External Transactions
Corporations
50. List of accounts used by a company' includes and identification number for each account.
Corporations
Chart of Accounts
Current Ratio
Audit