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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. 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.
IRA (Individual Retirement Account)
Classified Balance Sheet
NASDAQ
Equity
2. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Managerial Accounting
Sole Proprietorship
Securities and Exchange Commission
Partnership Agreement
3. Gross increase in equity from a company's business activities that earn income.
Generally Accepted Accounting Principles
Monetary Unit Assumption
Revenues
Risk
4. Monies (or sums of money) received from an investment; often in percent form.
Passive Income
Statement of Owner's Equity
Return
Partnership Agreement
5. Income from investments - including dividends - interest - or the sale of a property.
Portfolio Income
Posting
Monetary Unit Assumption
NASDAQ
6. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
SEC (Securites and Exchange Commision)
Mergers
Cost-benefit Constraint
Trial balance
7. A legal entity that is seperate from its owners.
Current Assets
Conceptual Framework
Contra Account
Corporations
8. Report of changes in equity over a period; adjusted for increases and for decreases.
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9. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Long Term Liabilities
Fiscal Year
Return on Assets
Classified Balance Sheet
10. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Revenue Recognition Principle
Depreciation
Closing process
Pro Forma Financial Statement
11. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Unearned Revenues
Cash Basis Accounting
Plant Assets
Matching Principle (or Expense Recognition Principle)
12. A tax deferred account that allows individuals to plan for their retirement.
IRA (Individual Retirement Account)
Unadjusted Trial Balance
CD (Certificate of Deposit)
Net Loss
13. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Mergers
Full Disclosure Principle
Depreciation
Posting Reference Column
14. List of accounts used by a company' includes and identification number for each account.
Contra Account
Account
Chart of Accounts
Posting
15. Record containing all accounts (with amounts) for a business.
Adjusting Entry
Ledger
Conceptual Framework
Materiality Constraint
16. Persons using accounting information who are not directly involved in running the organization.
Income Summary
External Users
External Transactions
Business Entity Assumption
17. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Unsecured Loan
Going-concern Assumptions
Conceptual Framework
Annual Financial Statements
18. Happenings that both affect an organization's financial position and can be reliably measured.
Auditors
Ethics
Managerial Accounting
Events
19. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Operating Cycle
Equity
CD (Certificate of Deposit)
Ethics
20. Assets pulled out of the business by the owner.
Unadjusted Trial Balance
Owner Withdrawals
Closing Entries
Stockholders
21. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Shares
Posting Reference Column
Source Documents
Unearned Revenue
22. The principle prescribing that revenue is recognized when earned.
Fixed Expense
Account
Corporations
Revenue Recognition Principle
23. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Internal users
Posting
Natural Business Years
Acquisition
24. Owners of a corporation who usually receive dividends. Also called shareholders.
Ponzi Scheme
Audit
Intangible assets
Stockholders
25. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an
Corporations
Preferred Stock
Compound Journal Entries
Generally Accepted Accounting Principles
26. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Partnership
External Users
Work Sheet
Cost-benefit Constraint
27. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Post Closing Trial Balance
SMART Goal
Long Term Investments
Bailout
28. Rules that specify acceptable accounting practices.
Adjusting Entry
Generally Accepted Accounting Principles
Profit Margin
Deficit
29. Tool used to show the effects of transactions and events on individual accounts.
Statement of Cash Flows
T Account
Conceptual Framework
Cost-benefit Constraint
30. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Intangible assets
SEC (Securites and Exchange Commision)
Chart of Accounts
Business Entity Assumption
31. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Balance Sheet
Audit
SMART Goal
Interim Financial Statements
32. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Risk Tolerance
Financial Accounting
Full Disclosure Principle
Posting Reference Column
33. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Adjusted Trial Balance
Present Value
Equity
Securities and Exchange Commission
34. Individuals hired to review financial reports and information systems of organizations.
Preferred Stock
Mergers
Corporations
Auditors
35. 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.
Varaiable Expense
International Financial Reporting Standards
Present Value
Current Ratio
36. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Shares
Passive Income
Unadjusted Trial Balance
Reversing Entries
37. Business owned by a single person.
Accrued Expenses
Secured Loan
Sole Propietorship
Permanent Accounts
38. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Reversing Entries
T Account
Time Period Assumptions
Risk
39. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Accrued Expenses
Debtors
Matching Principle
Depreciation
40. Difference between total debits and total credits (including the beginning balance) for an account.
Auditors
Managerial Accounting
Account Balance
Going-concern Assumptions
41. Area of accounting aimed mainly at serving external users.
Unsecured Loan
Current Ratio
Financial Accounting
Materiality Constraint
42. Activities within an organization that can affect the accounting equation.
Internal transactions
IRA (Individual Retirement Account)
Statement of Cash Flows
Sole Propietorship
43. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Ponzi Scheme
Temporary Accounts
Current Liabilities
Liabilities
44. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Ethics
Interim Financial Statements
Financial Accounting Standards Board
Current Ratio
45. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Account Balance
Account
Post Closing Trial Balance
Book Value
46. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Assets
Portfolio Income
Equity
Passive Income
47. Loaning or giving money to a business in orer to save it from bankruptcy.
Accounting
Bailout
Accrual Basis Accounting
Debtors
48. Principle that assumes transactions and events can be expressed in money units.
Balance Sheet
Monetary Unit Assumption
Stockholders
Partnership
49. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Journalizing
Debit
Financial Accounting Standards Board
Expenses
50. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Audit
Journal
Cost Principle
Bookkeeping