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. Activities within an organization that can affect the accounting equation.
Unearned Revenues
Internal transactions
External Transactions
Intangible assets
2. 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).
Risk Tolerance
Partnership
Closing Entries
IRA (Individual Retirement Account)
3. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
General Journal
Acquisition
Closing Entries
Varaiable Expense
4. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Passive Income
Net Loss
Journal
Expenses
5. 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.
Risk Tolerance
Revenue Recognition Principle
Owner - Capital
Accounting
6. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
CD (Certificate of Deposit)
Intangible assets
Passive Income
Expense Recognition Principle
7. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Unadjusted Trial Balance
Working Papers
Expanded Accounting Equation
Annual Financial Statements
8. Gross increase in equity from a company's business activities that earn income.
Revenues
Credit
Ledger
Ethics
9. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Bookkeeping
Managerial Accounting
Unclassified Balance Sheets
Stockholders
10. Assets put into the business by the owner.
Financial Accounting
Permanent Accounts
Owner Investment
Unearned Revenues
11. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Risk Tolerance
Present Value
Risk
Common Stock
12. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Debtors
Varaiable Expense
Conceptual Framework
Owner - Capital
13. Income that is available after all of the essential financial commitments have been paid.
Compound Journal Entries
Discretionary Income
Present Value
Debtors
14. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Long Term Liabilities
Deficit
Equity
Operating Cycle
15. Accounting information is based on cost with potential subsequent adjustments to fair value.
Limited Liability Corporation
Working Papers
Measurement Principle
Closing process
16. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).
Partnership Agreement
Income Summary
Liabilities
Measurement Principle
17. Process of transferring journal entry information to the ledger; computerized systems automate this process.
International Accounting Standards Board
Risk Tolerance
Posting
Stock
18. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Ethical Dilemma
Acquisition
Risk
Secured Loan
19. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.
Common Stock
Long Term Liabilities
Risk Tolerance
Prepaid Expenses
20. 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.
Credit
Managerial Accounting
Bookkeeping
International Financial Reporting Standards
21. Expenses that remain the same regardless of the circumstances.
Fixed Expense
SEC (Securites and Exchange Commision)
Chart of Accounts
Sole Proprietorship
22. Items paid for in advance of receiving their benefits. Classified as assets.
Prepaid Expenses
Ethics
Creditors
Owner Investment
23. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Bookkeeping
Net Loss
Closing process
Unearned Revenue
24. Independent group of full-time members responsible for setting accounting rules.
Adjusted Trial Balance
Financial Accounting Standards Board
Accrued Revenues
Risk
25. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Revenues
Return
Adjusted Trial Balance
Account
26. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Risk
Current Liabilities
Accounting Period
Accounting Equation
27. 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.
Straight-line Depreciation Method
Income Statement
Bookkeeping
Materiality Constraint
28. Assets pulled out of the business by the owner.
Account Balance
Net Loss
Ethical Dilemma
Owner Withdrawals
29. Outflows or using up of assets as part of operations of business to generate sales.
Expenses
NYSE (New York Stock Exchange)
Secured Loan
Common Stock
30. Record containing all accounts (with amounts) for a business.
Accrued Revenues
Ledger
Debit
Current Ratio
31. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Work Sheet
Shares
Shareholders
Adjusting Entry
32. Exchanges of economic value between one entity and another entity.
Sole Proprietorship
Auditors
Securities
External Transactions
33. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Statement of Cash Flows
Securities
Stock
Matching Principle (or Expense Recognition Principle)
34. A tax deferred account that allows individuals to plan for their retirement.
Account Balance
Revenues
Business Entity Assumption
IRA (Individual Retirement Account)
35. List of accounts used by a company' includes and identification number for each account.
CD (Certificate of Deposit)
Journalizing
Chart of Accounts
Bailout
36. Uncertainty about expected return.
Risk
Financial Accounting
Current Ratio
Working Papers
37. Tool used to show the effects of transactions and events on individual accounts.
Partnership Agreement
T Account
Assets
Stock
38. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Varaiable Expense
Return on Assets
Time Period Assumptions
Source Documents
39. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Ethics
Discretionary Income
Long Term Liabilities
Matching Principle (or Expense Recognition Principle)
40. Difference between total debits and total credits (including the beginning balance) for an account.
Double Entry Accounting
Accounting Equation
Income Summary
Account Balance
41. Process of recording transactions in a journal.
Stock
Preferred Stock
Journalizing
Statement of Cash Flows
42. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Auditors
Unclassified Balance Sheets
Book Value
Measurement Principle
43. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Secured Loan
Going-concern Assumptions
T Account
CD (Certificate of Deposit)
44. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Accounting Equation
Operating Cycle
Debit
Accrued Expenses
45. 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.
Permanent Accounts
Liabilities
Balance Sheet
Ledger
46. 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.
Expense Recognition Principle
Adjusting Entry
Current Liabilities
External Transactions
47. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Stock
Unclassified Balance Sheets
Cost Principle
Depreciation
48. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Closing Entries
Acquisition
Auditors
Unearned Revenues
49. Length of time covered by financial statements; also called reporting period.
Accounting Period
Cost-benefit Constraint
Stockholders
Return
50. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Federal Reserve System
Interim Financial Statements
Cost Principle
Accounting Cycle