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Test your basic knowledge |
DSST Principles Of Finance
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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. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Risk Tolerance
Expenses
Account
Ponzi Scheme
2. Expenses that remain the same regardless of the circumstances.
Fixed Expense
Time Period Assumptions
Shareholders
Closing process
3. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Intangible assets
Preferred Stock
Risk Tolerance
Depreciation
4. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Risk
Time Period Assumptions
Plant Assets
NYSE (New York Stock Exchange)
5. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Journal
Common Stock
Accounting Equation
Expanded Accounting Equation
6. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Liabilities
Current Ratio
Natural Business Years
Depreciation
7. Assets pulled out of the business by the owner.
Work Sheet
Closing Entries
Owner Withdrawals
Posting Reference Column
8. The value of a future cash steam discounted at the appropriate market interest rate.
Partnership
Unadjusted Trial Balance
Present Value
Accounting
9. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Accounting Cycle
Straight-line Depreciation Method
Source Documents
Securities
10. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Corporation
IPO
Managerial Accounting
SMART Goal
11. 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
Book Value
Sarbanes-Oxley Act (SOX)
Expenses
Adjusting Entry
12. Process of recording transactions in a journal.
Journalizing
Post Closing Trial Balance
Source Documents
Contra Account
13. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Fixed Expense
Unearned Revenue
Temporary Accounts
Full Disclosure Principle
14. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Stockholders
Creditors
Cost Principle
Bookkeeping
15. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Accounting
Audit
Going-concern Assumptions
Balance Sheet
16. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
General Journal
Generally Accepted Accounting Principles
CD (Certificate of Deposit)
Account Balance
17. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
SMART Goal
Cost-benefit Constraint
Accrued Expenses
Partnership
18. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Income Summary
Accrual Basis Accounting
IRA (Individual Retirement Account)
Accounting
19. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Accounting Period
SEC (Securites and Exchange Commision)
Double Entry Accounting
Work Sheet
20. Loaning or giving money to a business in orer to save it from bankruptcy.
Accounting
Corporation
Long Term Investments
Bailout
21. The principle prescribing that revenue is recognized when earned.
Revenue Recognition Principle
NYSE (New York Stock Exchange)
Credit
Natural Business Years
22. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Statement of Owner's Equity
Accrued Expenses
Journal
Revenues
23. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Unadjusted Trial Balance
IRA (Individual Retirement Account)
Unclassified Balance Sheets
Permanent Accounts
24. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Securities
Current Liabilities
Acquisition
Journal
25. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Posting
Partnership
Time Period Assumptions
Post Closing Trial Balance
26. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Compound Journal Entries
Conceptual Framework
Balance Sheet
Internal transactions
27. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Cost-benefit Constraint
Net Loss
Ethics
Accounting
28. 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.
Account Balance
Bonds
IRA (Individual Retirement Account)
Net Loss
29. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Corporation
Plant Assets
Return on Assets
CD (Certificate of Deposit)
30. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Work Sheet
External Users
Going-concern Assumptions
Fiscal Year
31. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.
Account
Accrued Revenues
Contra Account
International Accounting Standards Board
32. Report of changes in equity over a period; adjusted for increases and for decreases.
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33. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Conceptual Framework
Interim Financial Statements
Corporation
Monetary Unit Assumption
34. All purpose journal for recording the debits and credits of transactions and events.
Straight-line Depreciation Method
Accounting
General Journal
Work Sheet
35. Principle that assumes transactions and events can be expressed in money units.
SMART Goal
Monetary Unit Assumption
Current Assets
Accounting Period
36. Journal entries that affect at least three accounts.
Compound Journal Entries
Corporations
Income Statement
Contra Account
37. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Accounting Cycle
Owner - Capital
Money Market Account
Balance Sheet
38. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
International Accounting Standards Board
Classified Balance Sheet
Business Entity Assumption
Statement of Cash Flows
39. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Recordkeeping
Accrual Basis Accounting
IRA (Individual Retirement Account)
Securities
40. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Temporary Accounts
Equity
Plant Assets
Sole Propietorship
41. Excess of expenses over revenues for a period.
SMART Goal
Account
Net Loss
Money Market Account
42. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Financial Accounting Standards Board
Book Value
Balance Column Account
Accrued Revenues
43. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Depreciation
Net Income
Unclassified Balance Sheets
Intangible assets
44. Individuals or organizations entitled to receive payments
Assets
Balance Column Account
Creditors
Conceptual Framework
45. 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.
Events
Equity
Shares
Credit
46. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Current Liabilities
Closing Entries
External Transactions
Contra Account
47. Happenings that both affect an organization's financial position and can be reliably measured.
Accrued Expenses
Balance Column Account
Events
Book Value
48. 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.
Statement of Cash Flows
Generally Accepted Accounting Principles
Surplus
Adjusting Entry
49. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Sarbanes-Oxley Act (SOX)
Events
Annual Financial Statements
Operating Cycle
50. Outflows or using up of assets as part of operations of business to generate sales.
Limited Liability Corporation
Unearned Revenue
Expenses
Owner Investment