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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. A tax deferred account that allows individuals to plan for their retirement.
Audit
Cost-benefit Constraint
IRA (Individual Retirement Account)
Fiscal Year
2. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Credit
Mergers
Profit Margin
Risk
3. 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
Preferred Stock
Accounting Equation
Contra Account
Unclassified Balance Sheets
4. Assets put into the business by the owner.
Audit
Going-concern Assumptions
Owner Investment
Temporary Accounts
5. 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.
Auditors
NYSE (New York Stock Exchange)
Closing Entries
Working Papers
6. 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.
Sole Proprietorship
Permanent Accounts
Bonds
Passive Income
7. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Ethics
Accrued Expenses
Depreciation
Shareholders
8. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Preferred Stock
Passive Income
Unsecured Loan
Permanent Accounts
9. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Financial Accounting
Accounting Cycle
Preferred Stock
Risk Tolerance
10. The money left over when income exceeds expenditure.
Cash Basis Accounting
Classified Balance Sheet
Corporations
Surplus
11. Persons using accounting information who are directly involved in managing the organization.
Account
Surplus
Internal users
Balance Sheet
12. Outflows or using up of assets as part of operations of business to generate sales.
SMART Goal
Expenses
Internal transactions
Contra Account
13. 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.
Debit
Adjusting Entry
Income Summary
Generally Accepted Accounting Principles
14. List of accounts and balances prepared before accounting adjustments are recorded and posted.
CD (Certificate of Deposit)
Unadjusted Trial Balance
Cash Basis Accounting
Recordkeeping
15. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Journal
Bonds
Pro Forma Financial Statement
Closing process
16. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
International Financial Reporting Standards
IRA (Individual Retirement Account)
Interim Financial Statements
Internal users
17. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Passive Income
Expenses
Journal
Permanent Accounts
18. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
NYSE (New York Stock Exchange)
Materiality Constraint
Internal users
Straight-line Depreciation Method
19. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Adjusting Entry
Expenses
Post Closing Trial Balance
Federal Reserve System
20. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Shares
Accrued Expenses
Expense Recognition Principle
Intangible assets
21. All purpose journal for recording the debits and credits of transactions and events.
Internal users
Credit
Secured Loan
General Journal
22. Business owned by a single person.
Sarbanes-Oxley Act (SOX)
External Users
Cost-benefit Constraint
Sole Propietorship
23. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Common Stock
Prepaid Expenses
Balance Column Account
Contra Account
24. Income from investments - including dividends - interest - or the sale of a property.
Annual Financial Statements
Portfolio Income
Bailout
Account
25. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Current Ratio
Prepaid Expenses
Intangible assets
Account
26. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Measurement Principle
Permanent Accounts
Accrued Expenses
Return
27. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Assets
Expense Recognition Principle
Securities and Exchange Commission
Accounting Cycle
28. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Events
Accrued Expenses
Partnership Agreement
Generally Accepted Accounting Principles
29. 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.
Federal Reserve System
Sarbanes-Oxley Act (SOX)
Expenses
Reversing Entries
30. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Statement of Cash Flows
Federal Reserve System
Ethical Dilemma
Depreciation
31. 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.
Owner - Capital
Passive Income
Liabilities
Events
32. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Preferred Stock
Journal
Balance Sheet
Risk
33. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Current Assets
Financial Accounting
Accounting Equation
Risk
34. Items paid for in advance of receiving their benefits. Classified as assets.
Monetary Unit Assumption
International Financial Reporting Standards
Cost-benefit Constraint
Prepaid Expenses
35. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Stock
Shares
Federal Reserve System
Account Balance
36. Record containing all accounts (with amounts) for a business.
Chart of Accounts
Ledger
Risk
Owner - Capital
37. Process of recording transactions in a journal.
Journalizing
Contra Account
Work Sheet
SMART Goal
38. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Internal users
Time Period Assumptions
Bonds
Bookkeeping
39. 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.
International Financial Reporting Standards
Matching Principle
Internal users
Accounting Cycle
40. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Owner Withdrawals
Accounting Cycle
Fiscal Year
Account
41. A legal entity that is seperate from its owners.
Shareholders
Debit
Corporations
Deficit
42. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Fixed Expense
Closing process
Reversing Entries
Full Disclosure Principle
43. Happenings that both affect an organization's financial position and can be reliably measured.
Expanded Accounting Equation
Book Value
Audit
Events
44. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Unearned Revenues
Expenses
Limited Liability Corporation
Owner - Capital
45. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Sole Propietorship
Corporation
Ethical Dilemma
Partnership Agreement
46. 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
Stockholders
Materiality Constraint
Varaiable Expense
47. 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.
Return
Journalizing
Income Statement
Prepaid Expenses
48. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Adjusting Entry
Managerial Accounting
Accrued Revenues
Recordkeeping
49. Independent group of full-time members responsible for setting accounting rules.
SEC (Securites and Exchange Commision)
Financial Accounting Standards Board
Expense Recognition Principle
Annual Financial Statements
50. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Accounting Cycle
Business Entity Assumption
Going-concern Assumptions
Corporation