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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. Loaning or giving money to a business in orer to save it from bankruptcy.
Ethics
Ponzi Scheme
Bailout
Balance Column Account
2. Business owned by one person that is not organized as a corporation.
Sole Proprietorship
Generally Accepted Accounting Principles
IPO
Recordkeeping
3. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
General Journal
Matching Principle
Stock
Surplus
4. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Owner Investment
Acquisition
Creditors
Corporation
5. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Ethical Dilemma
Balance Column Account
Matching Principle (or Expense Recognition Principle)
Accounting Equation
6. The value of a future cash steam discounted at the appropriate market interest rate.
Financial Accounting Standards Board
Present Value
Mergers
Working Papers
7. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Securities
Going-concern Assumptions
General Journal
Partnership Agreement
8. Uncertainty about expected return.
Unearned Revenue
Passive Income
Expenses
Risk
9. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Sarbanes-Oxley Act (SOX)
Common Stock
Monetary Unit Assumption
Limited Liability Corporation
10. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Balance Column Account
External Transactions
Posting
Securities and Exchange Commission
11. The combining of two or more comapnies into one larger company.
Intangible assets
Expanded Accounting Equation
Chart of Accounts
Mergers
12. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Post Closing Trial Balance
Income Statement
Assets
Balance Sheet
13. 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
Sarbanes-Oxley Act (SOX)
Corporations
Accounting Cycle
Stock
14. Expenses that remain the same regardless of the circumstances.
Partnership
Fixed Expense
Return
Shareholders
15. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
Going-concern Assumptions
Revenue Recognition Principle
IPO
Net Income
16. Individuals or organizations that owe money.
Sarbanes-Oxley Act (SOX)
T Account
Bonds
Debtors
17. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Expanded Accounting Equation
Creditors
Classified Balance Sheet
International Accounting Standards Board
18. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Account
Creditors
Securities and Exchange Commission
Return on Assets
19. Persons using accounting information who are directly involved in managing the organization.
Revenues
Internal users
General Journal
Cost-benefit Constraint
20. Owners of a corporation who usually receive dividends. Also called stockholders.
Shareholders
Equity
Accrued Revenues
Chart of Accounts
21. Business owned by a single person.
Sole Propietorship
Permanent Accounts
Cost Principle
Temporary Accounts
22. Accounting information is based on cost with potential subsequent adjustments to fair value.
Intangible assets
Plant Assets
Revenues
Measurement Principle
23. 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.
Income Statement
Current Ratio
Adjusted Trial Balance
Expense Recognition Principle
24. A legal entity that is seperate from its owners.
Chart of Accounts
Shareholders
Portfolio Income
Corporations
25. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
IPO
Monetary Unit Assumption
Surplus
Balance Column Account
26. The first time a company sells shares of its stock to the public.
IPO
Debtors
Unclassified Balance Sheets
Current Assets
27. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Time Period Assumptions
International Accounting Standards Board
SMART Goal
Double Entry Accounting
28. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.
Unclassified Balance Sheets
Expenses
Contra Account
Matching Principle
29. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Long Term Investments
Debit
Expense Recognition Principle
Secured Loan
30. Assets put into the business by the owner.
Owner Investment
Chart of Accounts
Deficit
Cost-benefit Constraint
31. Exchanges of economic value between one entity and another entity.
Mergers
Expanded Accounting Equation
IRA (Individual Retirement Account)
External Transactions
32. 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.
Annual Financial Statements
Permanent Accounts
Journalizing
Owner - Capital
33. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Source Documents
Unearned Revenues
Debit
Post Closing Trial Balance
34. Record containing all accounts (with amounts) for a business.
Temporary Accounts
Debtors
Ledger
External Users
35. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Acquisition
Measurement Principle
Accrued Expenses
Accrual Basis Accounting
36. Persons using accounting information who are not directly involved in running the organization.
External Users
SMART Goal
Plant Assets
Accrual Basis Accounting
37. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Preferred Stock
Cash Basis Accounting
Business Entity Assumption
Temporary Accounts
38. A tax deferred account that allows individuals to plan for their retirement.
Journal
Money Market Account
Assets
IRA (Individual Retirement Account)
39. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Ethics
External Transactions
Federal Reserve System
Stockholders
40. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Mergers
Net Income
Work Sheet
Limited Liability Corporation
41. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Sole Proprietorship
Events
Current Ratio
Accrued Expenses
42. 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.
Pro Forma Financial Statement
NYSE (New York Stock Exchange)
Securities and Exchange Commission
Natural Business Years
43. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Accounting
Partnership Agreement
SMART Goal
Double Entry Accounting
44. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Debt Ratio
Permanent Accounts
Accrued Expenses
Balance Column Account
45. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Managerial Accounting
Securities and Exchange Commission
Double Entry Accounting
Revenues
46. All purpose journal for recording the debits and credits of transactions and events.
T Account
Owner Investment
General Journal
IRA (Individual Retirement Account)
47. Excess of expenses over revenues for a period.
Unearned Revenues
Net Loss
IPO
Temporary Accounts
48. Individuals or organizations entitled to receive payments
Financial Accounting Standards Board
Creditors
Equity
Auditors
49. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
IRA (Individual Retirement Account)
Money Market Account
CD (Certificate of Deposit)
Plant Assets
50. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Unearned Revenues
Full Disclosure Principle
Equity
Trial balance