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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. List of accounts used by a company' includes and identification number for each account.
SEC (Securites and Exchange Commision)
Chart of Accounts
Income Statement
Owner Investment
2. Income from investments - including dividends - interest - or the sale of a property.
Portfolio Income
External Transactions
Statement of Owner's Equity
Owner - Capital
3. 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).
T Account
Risk
Accounting Cycle
Income Summary
4. The value of a future cash steam discounted at the appropriate market interest rate.
Present Value
Securities
Closing process
Operating Cycle
5. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
General Journal
Current Ratio
Unsecured Loan
Stockholders
6. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Preferred Stock
Matching Principle (or Expense Recognition Principle)
Unclassified Balance Sheets
Deficit
7. Rules that specify acceptable accounting practices.
Expenses
Accrued Expenses
Generally Accepted Accounting Principles
Unearned Revenues
8. 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.
Federal Reserve System
International Financial Reporting Standards
Partnership
NASDAQ
9. Income that is available after all of the essential financial commitments have been paid.
Sole Proprietorship
Account Balance
Discretionary Income
Accounting
10. A tax deferred account that allows individuals to plan for their retirement.
IRA (Individual Retirement Account)
Prepaid Expenses
Closing process
Permanent Accounts
11. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Owner Withdrawals
Cost-benefit Constraint
Return on Assets
Accounting Cycle
12. Owners of a corporation who usually receive dividends. Also called shareholders.
Balance Sheet
Partnership
Stockholders
Statement of Owner's Equity
13. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Internal transactions
Return
Bookkeeping
Book Value
14. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Securities
Mergers
Liabilities
Posting Reference Column
15. 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
NASDAQ
CD (Certificate of Deposit)
Journal
External Users
16. Owners of a corporation who usually receive dividends. Also called stockholders.
Accounting Equation
Shareholders
Ponzi Scheme
Internal users
17. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Pro Forma Financial Statement
Events
Stock
Unearned Revenues
18. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
Straight-line Depreciation Method
Cost Principle
Closing Entries
Debt Ratio
19. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Accounting
Managerial Accounting
CD (Certificate of Deposit)
Ponzi Scheme
20. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Cost Principle
Debtors
Conceptual Framework
Work Sheet
21. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.
Accounting Cycle
NYSE (New York Stock Exchange)
Federal Reserve System
Chart of Accounts
22. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Surplus
IRA (Individual Retirement Account)
Cash Basis Accounting
Accounting
23. 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.
Deficit
NYSE (New York Stock Exchange)
Cash Basis Accounting
Current Liabilities
24. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Fixed Expense
Going-concern Assumptions
Money Market Account
Shareholders
25. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Accounting Period
Partnership Agreement
Debit
Assets
26. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Post Closing Trial Balance
Balance Sheet
Deficit
Long Term Liabilities
27. 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
Discretionary Income
Going-concern Assumptions
Permanent Accounts
Sarbanes-Oxley Act (SOX)
28. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Deficit
Current Liabilities
Ledger
Pro Forma Financial Statement
29. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
IRA (Individual Retirement Account)
Unearned Revenue
Owner Withdrawals
Audit
30. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Working Papers
Bonds
Corporation
Securities
31. Assets pulled out of the business by the owner.
Owner Withdrawals
Balance Column Account
Journal
Ledger
32. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Common Stock
Ledger
Unclassified Balance Sheets
Credit
33. Activities within an organization that can affect the accounting equation.
Posting
Stock
Common Stock
Internal transactions
34. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Interim Financial Statements
Permanent Accounts
T Account
Ledger
35. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Working Papers
Money Market Account
Posting Reference Column
NYSE (New York Stock Exchange)
36. The money left over when income exceeds expenditure.
Journal
NYSE (New York Stock Exchange)
Corporations
Surplus
37. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Corporation
Double Entry Accounting
Working Papers
Federal Reserve System
38. Report of changes in equity over a period; adjusted for increases and for decreases.
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39. Independent group of full-time members responsible for setting accounting rules.
Financial Accounting Standards Board
Statement of Owner's Equity
Work Sheet
Intangible assets
40. The first time a company sells shares of its stock to the public.
IPO
Events
Sole Propietorship
Managerial Accounting
41. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Expense Recognition Principle
NYSE (New York Stock Exchange)
Journal
Current Ratio
42. 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.
Temporary Accounts
Unsecured Loan
Reversing Entries
Partnership
43. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Federal Reserve System
Prepaid Expenses
Plant Assets
Corporations
44. Uncertainty about expected return.
Journalizing
Income Summary
Risk
Securities and Exchange Commission
45. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Operating Cycle
Contra Account
Source Documents
Stock
46. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Journalizing
Limited Liability Corporation
Trial balance
Portfolio Income
47. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Owner Withdrawals
Revenues
Owner - Capital
Adjusted Trial Balance
48. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Account
Ethical Dilemma
Discretionary Income
Adjusting Entry
49. A legal entity that is seperate from its owners.
Corporations
Double Entry Accounting
Fixed Expense
Common Stock
50. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Source Documents
Accrued Revenues
Acquisition
Compound Journal Entries