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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
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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. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Accounting Period
Ethics
Debit
Partnership
2. Happenings that both affect an organization's financial position and can be reliably measured.
Intangible assets
Common Stock
Expense Recognition Principle
Events
3. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Going-concern Assumptions
Money Market Account
Cost Principle
Net Loss
4. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted
Expanded Accounting Equation
Securities
Federal Reserve System
Bookkeeping
5. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Surplus
Sole Propietorship
Accounting Equation
Account
6. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Matching Principle (or Expense Recognition Principle)
General Journal
Measurement Principle
T Account
7. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Financial Accounting Standards Board
Fiscal Year
Federal Reserve System
IRA (Individual Retirement Account)
8. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Internal transactions
External Transactions
Accounting Period
Bookkeeping
9. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Bookkeeping
Managerial Accounting
Debit
Debt Ratio
10. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Post Closing Trial Balance
Chart of Accounts
Stock
Going-concern Assumptions
11. Journal entries that affect at least three accounts.
Compound Journal Entries
Monetary Unit Assumption
Interim Financial Statements
Revenues
12. Record containing all accounts (with amounts) for a business.
Balance Column Account
IPO
Corporations
Ledger
13. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Post Closing Trial Balance
Stockholders
Corporation
Debtors
14. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Liabilities
Fiscal Year
Credit
Balance Sheet
15. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Accrued Expenses
Current Liabilities
Audit
Time Period Assumptions
16. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Current Assets
Securities
Return
Journal
17. Persons using accounting information who are not directly involved in running the organization.
Securities and Exchange Commission
External Users
Net Loss
Chart of Accounts
18. List of accounts used by a company' includes and identification number for each account.
Mergers
Chart of Accounts
Federal Reserve System
Post Closing Trial Balance
19. 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.
Sole Proprietorship
Debt Ratio
Sarbanes-Oxley Act (SOX)
Owner - Capital
20. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Bookkeeping
Expense Recognition Principle
Temporary Accounts
Debt Ratio
21. The principle prescribing that revenue is recognized when earned.
Compound Journal Entries
Accounting
Federal Reserve System
Revenue Recognition Principle
22. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Deficit
Matching Principle (or Expense Recognition Principle)
Source Documents
Time Period Assumptions
23. Individuals or organizations that owe money.
Debtors
Journalizing
IRA (Individual Retirement Account)
Closing process
24. Area of accounting aimed mainly at serving external users.
Discretionary Income
Ponzi Scheme
Surplus
Financial Accounting
25. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Varaiable Expense
Posting
Portfolio Income
Depreciation
26. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Long Term Liabilities
Partnership Agreement
Liabilities
Sole Propietorship
27. Assets put into the business by the owner.
NYSE (New York Stock Exchange)
Statement of Owner's Equity
Owner Investment
Account Balance
28. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Statement of Owner's Equity
Account
Annual Financial Statements
Ethical Dilemma
29. 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.
Securities and Exchange Commission
Risk
Expense Recognition Principle
Closing Entries
30. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Balance Column Account
Stockholders
Return on Assets
Matching Principle (or Expense Recognition Principle)
31. Income from investments - including dividends - interest - or the sale of a property.
Time Period Assumptions
Adjusting Entry
Closing process
Portfolio Income
32. Report of changes in equity over a period; adjusted for increases and for decreases.
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33. Business owned by one person that is not organized as a corporation.
Accrued Revenues
Unadjusted Trial Balance
Sole Proprietorship
Deficit
34. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Conceptual Framework
Balance Sheet
Internal transactions
Cost Principle
35. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Fixed Expense
Going-concern Assumptions
NASDAQ
Book Value
36. Expenses that remain the same regardless of the circumstances.
Fixed Expense
Compound Journal Entries
Chart of Accounts
Limited Liability Corporation
37. An expense that changes from period to perio - such as food or gasoline costs.
Debit
Acquisition
Varaiable Expense
Current Liabilities
38. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Source Documents
Owner Investment
Accrual Basis Accounting
Compound Journal Entries
39. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
T Account
Unadjusted Trial Balance
Profit Margin
Income Statement
40. 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.
Risk
Acquisition
Book Value
Income Statement
41. Gross increase in equity from a company's business activities that earn income.
Account Balance
Statement of Cash Flows
Revenues
Auditors
42. Individuals or organizations entitled to receive payments
Interim Financial Statements
Creditors
Annual Financial Statements
Shares
43. Rules that specify acceptable accounting practices.
Generally Accepted Accounting Principles
Ethical Dilemma
Income Statement
General Journal
44. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Cash Basis Accounting
Risk Tolerance
Ledger
Current Ratio
45. Items paid for in advance of receiving their benefits. Classified as assets.
Prepaid Expenses
Long Term Investments
Corporation
Acquisition
46. 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
Federal Reserve System
Sole Proprietorship
Risk Tolerance
47. 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.
Bonds
International Accounting Standards Board
Unearned Revenue
Temporary Accounts
48. 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.
IPO
Revenues
Return on Assets
Ponzi Scheme
49. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
Stock
Creditors
Income Summary
CD (Certificate of Deposit)
50. 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).
Debit
Unearned Revenues
Depreciation
Closing Entries
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