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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. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
General Journal
Book Value
Ponzi Scheme
Working Papers
2. List of accounts used by a company' includes and identification number for each account.
Balance Column Account
Shares
Chart of Accounts
Posting
3. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Materiality Constraint
Owner Withdrawals
Balance Column Account
Accrued Expenses
4. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Current Liabilities
Long Term Investments
Temporary Accounts
Contra Account
5. Report of changes in equity over a period; adjusted for increases and for decreases.
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6. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Source Documents
Securities
Shareholders
Statement of Cash Flows
7. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Bonds
Unclassified Balance Sheets
Time Period Assumptions
Events
8. 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.
Creditors
Accrued Revenues
Internal transactions
Straight-line Depreciation Method
9. Business owned by one person that is not organized as a corporation.
Double Entry Accounting
Risk
Contra Account
Sole Proprietorship
10. Length of time covered by financial statements; also called reporting period.
Internal users
Common Stock
Accounting Period
Financial Accounting Standards Board
11. 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.
Income Statement
Partnership Agreement
CD (Certificate of Deposit)
Return on Assets
12. Principle that assumes transactions and events can be expressed in money units.
Monetary Unit Assumption
Natural Business Years
Common Stock
Matching Principle (or Expense Recognition Principle)
13. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Current Assets
Prepaid Expenses
Shares
Events
14. Outflows or using up of assets as part of operations of business to generate sales.
Expenses
Full Disclosure Principle
Profit Margin
Post Closing Trial Balance
15. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Current Ratio
Stock
Working Papers
Balance Column Account
16. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
International Financial Reporting Standards
Credit
Expenses
Cost Principle
17. Owners of a corporation who usually receive dividends. Also called stockholders.
Creditors
Shareholders
Fixed Expense
Sole Proprietorship
18. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Current Liabilities
Debit
Common Stock
Shareholders
19. Assets put into the business by the owner.
Owner Investment
Fiscal Year
Accrued Revenues
Accrual Basis Accounting
20. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
International Financial Reporting Standards
Return
Accrued Revenues
Time Period Assumptions
21. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Profit Margin
Owner Investment
Accounting
Current Liabilities
22. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Securities and Exchange Commission
Liabilities
Compound Journal Entries
Fiscal Year
23. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Interim Financial Statements
Corporations
Equity
Fixed Expense
24. Activities within an organization that can affect the accounting equation.
Owner Investment
SMART Goal
Ethical Dilemma
Internal transactions
25. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Shares
Journalizing
Present Value
Conceptual Framework
26. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Full Disclosure Principle
Unsecured Loan
Money Market Account
Going-concern Assumptions
27. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Debt Ratio
Accounting Period
Financial Accounting
Cost-benefit Constraint
28. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
T Account
Closing process
Annual Financial Statements
Secured Loan
29. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Accounting Equation
Trial balance
Debtors
Adjusting Entry
30. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
IRA (Individual Retirement Account)
Cash Basis Accounting
Unclassified Balance Sheets
Conceptual Framework
31. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Events
Creditors
Unsecured Loan
NASDAQ
32. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
Statement of Cash Flows
Present Value
Unadjusted Trial Balance
CD (Certificate of Deposit)
33. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Natural Business Years
Expenses
Return
Work Sheet
34. 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.
Corporation
International Accounting Standards Board
Recordkeeping
Owner - Capital
35. Income that is available after all of the essential financial commitments have been paid.
Assets
Corporations
Discretionary Income
Passive Income
36. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Partnership Agreement
Time Period Assumptions
Unclassified Balance Sheets
Current Liabilities
37. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
T Account
Posting
Pro Forma Financial Statement
Ethical Dilemma
38. Business owned by two or more people.
General Journal
Owner Investment
Partnership
Accounting
39. Owners of a corporation who usually receive dividends. Also called shareholders.
Securities and Exchange Commission
Unadjusted Trial Balance
SEC (Securites and Exchange Commision)
Stockholders
40. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
Corporations
Internal users
Managerial Accounting
Straight-line Depreciation Method
41. Persons using accounting information who are not directly involved in running the organization.
External Users
Journal
Audit
Shareholders
42. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Debt Ratio
Balance Sheet
Stockholders
Managerial Accounting
43. Rules that specify acceptable accounting practices.
Compound Journal Entries
Bonds
Generally Accepted Accounting Principles
Unearned Revenue
44. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Cost-benefit Constraint
Compound Journal Entries
Passive Income
Managerial Accounting
45. Items paid for in advance of receiving their benefits. Classified as assets.
Straight-line Depreciation Method
Statement of Cash Flows
Prepaid Expenses
SMART Goal
46. 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.
Secured Loan
Financial Accounting Standards Board
Bonds
Accrued Revenues
47. 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
Posting Reference Column
NASDAQ
Partnership
Unadjusted Trial Balance
48. 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).
Conceptual Framework
Internal users
Income Summary
Unearned Revenues
49. Area of accounting aimed mainly at serving external users.
Corporations
Work Sheet
Financial Accounting
Ledger
50. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Trial balance
Fiscal Year
Depreciation
Compound Journal Entries