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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. Activities within an organization that can affect the accounting equation.
Unearned Revenue
Internal transactions
Journal
Mergers
2. Assets put into the business by the owner.
Double Entry Accounting
Account Balance
NASDAQ
Owner Investment
3. 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
Prepaid Expenses
Common Stock
Going-concern Assumptions
4. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Accounting Cycle
Contra Account
Auditors
Profit Margin
5. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Net Income
Bookkeeping
Fiscal Year
External Users
6. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Unsecured Loan
Creditors
Balance Column Account
Risk
7. Excess of expenses over revenues for a period.
Time Period Assumptions
Limited Liability Corporation
Revenues
Net Loss
8. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Partnership
Unadjusted Trial Balance
Limited Liability Corporation
Journalizing
9. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Work Sheet
Trial balance
Book Value
Partnership Agreement
10. 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.
Ponzi Scheme
Expanded Accounting Equation
International Financial Reporting Standards
Adjusting Entry
11. Monies (or sums of money) received from an investment; often in percent form.
Return
Secured Loan
Preferred Stock
Matching Principle (or Expense Recognition Principle)
12. The first time a company sells shares of its stock to the public.
Bookkeeping
IPO
Income Statement
Partnership
13. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Annual Financial Statements
Liabilities
Fixed Expense
Plant Assets
14. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Partnership
Statement of Owner's Equity
Accounting
Source Documents
15. 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).
Varaiable Expense
Closing Entries
Accrual Basis Accounting
Ponzi Scheme
16. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Posting Reference Column
Corporation
Securities and Exchange Commission
Closing Entries
17. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Compound Journal Entries
Full Disclosure Principle
Common Stock
Current Assets
18. Expenses that remain the same regardless of the circumstances.
Return on Assets
Balance Sheet
Fixed Expense
Expenses
19. 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
Liabilities
Account Balance
Portfolio Income
20. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Going-concern Assumptions
Straight-line Depreciation Method
Business Entity Assumption
Closing Entries
21. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb
Revenues
NASDAQ
Closing process
Sarbanes-Oxley Act (SOX)
22. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Corporation
Account Balance
T Account
Source Documents
23. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Conceptual Framework
Balance Sheet
Interim Financial Statements
Shares
24. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Matching Principle
Debt Ratio
Cash Basis Accounting
Events
25. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Conceptual Framework
Posting Reference Column
Partnership
Posting
26. 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).
Current Liabilities
Income Summary
Work Sheet
Net Loss
27. Report of changes in equity over a period; adjusted for increases and for decreases.
28. List of accounts used by a company' includes and identification number for each account.
Sole Propietorship
Unadjusted Trial Balance
Income Statement
Chart of Accounts
29. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
International Accounting Standards Board
Net Income
Accounting
Audit
30. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Intangible assets
Accrued Expenses
Discretionary Income
Expense Recognition Principle
31. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Partnership
Current Ratio
Straight-line Depreciation Method
Contra Account
32. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Auditors
Federal Reserve System
Managerial Accounting
Generally Accepted Accounting Principles
33. Outflows or using up of assets as part of operations of business to generate sales.
NYSE (New York Stock Exchange)
Natural Business Years
Recordkeeping
Expenses
34. The value of a future cash steam discounted at the appropriate market interest rate.
Internal transactions
Operating Cycle
Present Value
Net Income
35. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Materiality Constraint
Current Liabilities
Generally Accepted Accounting Principles
Corporation
36. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Liabilities
Temporary Accounts
Long Term Investments
Internal users
37. Individuals or organizations that owe money.
Mergers
Preferred Stock
Profit Margin
Debtors
38. Income that is available after all of the essential financial commitments have been paid.
Discretionary Income
Measurement Principle
Unearned Revenue
Journalizing
39. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Accounting
Revenue Recognition Principle
IPO
Time Period Assumptions
40. Exchanges of economic value between one entity and another entity.
Risk
Return
Expenses
External Transactions
41. The principle prescribing that revenue is recognized when earned.
Revenue Recognition Principle
Discretionary Income
Partnership Agreement
Unsecured Loan
42. 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
Financial Accounting
Common Stock
Sarbanes-Oxley Act (SOX)
Contra Account
43. Individuals or organizations entitled to receive payments
Creditors
Cost-benefit Constraint
Fiscal Year
Intangible assets
44. Area of accounting aimed mainly at serving external users.
Current Ratio
Financial Accounting
Intangible assets
SEC (Securites and Exchange Commision)
45. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Matching Principle (or Expense Recognition Principle)
Adjusted Trial Balance
Credit
Deficit
46. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Owner Withdrawals
Debt Ratio
Cost Principle
Profit Margin
47. Happenings that both affect an organization's financial position and can be reliably measured.
Events
Equity
Audit
Accounting Cycle
48. Gross increase in equity from a company's business activities that earn income.
Classified Balance Sheet
Debit
Adjusting Entry
Revenues
49. Income from investments - including dividends - interest - or the sale of a property.
Portfolio Income
Expenses
Shares
Money Market Account
50. 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.
Reversing Entries
NYSE (New York Stock Exchange)
International Financial Reporting Standards
Matching Principle (or Expense Recognition Principle)