SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
SEC (Securites and Exchange Commision)
Accrued Expenses
Materiality Constraint
Balance Sheet
2. 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.
Accounting
Liabilities
Measurement Principle
Accrued Expenses
3. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Risk Tolerance
Managerial Accounting
Limited Liability Corporation
External Transactions
4. 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.
Partnership Agreement
Journalizing
International Financial Reporting Standards
Matching Principle
5. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Unsecured Loan
Assets
Cash Basis Accounting
Corporation
6. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
International Financial Reporting Standards
International Accounting Standards Board
Accrued Revenues
Post Closing Trial Balance
7. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Accounting
Compound Journal Entries
Account
Debt Ratio
8. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Portfolio Income
Time Period Assumptions
International Accounting Standards Board
SEC (Securites and Exchange Commision)
9. 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.
T Account
Corporation
Expense Recognition Principle
Matching Principle
10. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Partnership Agreement
Bailout
Statement of Cash Flows
Accounting Equation
11. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Audit
Income Summary
Posting
Risk Tolerance
12. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Accounting Equation
Depreciation
Current Ratio
Secured Loan
13. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Contra Account
Double Entry Accounting
Acquisition
Profit Margin
14. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.
Equity
Long Term Liabilities
International Accounting Standards Board
Audit
15. Assets pulled out of the business by the owner.
Owner Withdrawals
Temporary Accounts
Time Period Assumptions
Account Balance
16. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Internal transactions
Unadjusted Trial Balance
Creditors
Depreciation
17. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Generally Accepted Accounting Principles
Chart of Accounts
Bookkeeping
Shareholders
18. 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
Account
Securities and Exchange Commission
Net Loss
19. The first time a company sells shares of its stock to the public.
Classified Balance Sheet
Auditors
International Accounting Standards Board
IPO
20. List of accounts used by a company' includes and identification number for each account.
Source Documents
Ledger
Long Term Investments
Chart of Accounts
21. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Audit
Posting
Cost Principle
Pro Forma Financial Statement
22. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Trial balance
Materiality Constraint
Balance Sheet
Business Entity Assumption
23. Rules that specify acceptable accounting practices.
Current Liabilities
Bailout
Creditors
Generally Accepted Accounting Principles
24. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Financial Accounting
Materiality Constraint
General Journal
Passive Income
25. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Contra Account
Straight-line Depreciation Method
Interim Financial Statements
Deficit
26. Journal entries that affect at least three accounts.
Current Ratio
Compound Journal Entries
Unclassified Balance Sheets
Auditors
27. Individuals or organizations entitled to receive payments
Bailout
Matching Principle
Financial Accounting
Creditors
28. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Varaiable Expense
Monetary Unit Assumption
Account Balance
Shares
29. A corporation's basic ownership share.
Common Stock
Trial balance
Debtors
Sarbanes-Oxley Act (SOX)
30. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Securities and Exchange Commission
Sarbanes-Oxley Act (SOX)
Accrued Revenues
Statement of Cash Flows
31. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Expense Recognition Principle
Interim Financial Statements
Source Documents
Audit
32. Items paid for in advance of receiving their benefits. Classified as assets.
Reversing Entries
Risk
Prepaid Expenses
Federal Reserve System
33. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Sarbanes-Oxley Act (SOX)
Adjusted Trial Balance
Intangible assets
Account Balance
34. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Recordkeeping
Unearned Revenue
International Financial Reporting Standards
Fiscal Year
35. Activities within an organization that can affect the accounting equation.
Owner Withdrawals
Internal transactions
Present Value
Going-concern Assumptions
36. Income from investments - including dividends - interest - or the sale of a property.
Accrued Expenses
Bailout
Current Liabilities
Portfolio Income
37. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Partnership Agreement
Permanent Accounts
Return on Assets
Unearned Revenues
38. Expenses that remain the same regardless of the circumstances.
Fixed Expense
Deficit
Business Entity Assumption
Corporation
39. Owners of a corporation who usually receive dividends. Also called shareholders.
Current Liabilities
Stockholders
Depreciation
Post Closing Trial Balance
40. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Limited Liability Corporation
Contra Account
International Financial Reporting Standards
CD (Certificate of Deposit)
41. A tax deferred account that allows individuals to plan for their retirement.
Discretionary Income
Federal Reserve System
Creditors
IRA (Individual Retirement Account)
42. Statements that show the effect of proposed transactions and events as if they had occurred.
Net Income
Permanent Accounts
Cost-benefit Constraint
Pro Forma Financial Statement
43. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Current Liabilities
Contra Account
Source Documents
Securities and Exchange Commission
44. The money left over when income exceeds expenditure.
Securities and Exchange Commission
Passive Income
Surplus
Contra Account
45. Individuals or organizations that owe money.
Accounting Equation
Revenue Recognition Principle
Balance Sheet
Debtors
46. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Money Market Account
Unadjusted Trial Balance
Pro Forma Financial Statement
Managerial Accounting
47. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Common Stock
Accrued Expenses
Managerial Accounting
Current Assets
48. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Stockholders
Unclassified Balance Sheets
Events
Time Period Assumptions
49. An expense that changes from period to perio - such as food or gasoline costs.
Natural Business Years
NASDAQ
Varaiable Expense
Shareholders
50. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Long Term Investments
Closing Entries
Bookkeeping
Business Entity Assumption