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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. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Current Liabilities
Audit
Securities and Exchange Commission
Journalizing
2. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Unearned Revenues
Fiscal Year
Business Entity Assumption
Managerial Accounting
3. Independent group of full-time members responsible for setting accounting rules.
Financial Accounting Standards Board
Return on Assets
Income Summary
Generally Accepted Accounting Principles
4. Excess of expenses over revenues for a period.
Intangible assets
Bonds
Net Loss
CD (Certificate of Deposit)
5. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Going-concern Assumptions
Bailout
Bookkeeping
Adjusted Trial Balance
6. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Corporation
Balance Column Account
Sarbanes-Oxley Act (SOX)
Unearned Revenues
7. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.
Liabilities
Journalizing
Return
Closing process
8. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Permanent Accounts
Intangible assets
Secured Loan
Managerial Accounting
9. Goals that are specific - measurable - attainable - realistic - and time bound.
SMART Goal
Financial Accounting
Long Term Liabilities
Double Entry Accounting
10. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Materiality Constraint
Account
Balance Sheet
Time Period Assumptions
11. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Intangible assets
Surplus
Source Documents
Profit Margin
12. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.
Ponzi Scheme
Financial Accounting
Partnership
Bailout
13. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Credit
Adjusted Trial Balance
Compound Journal Entries
Natural Business Years
14. 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.
CD (Certificate of Deposit)
Generally Accepted Accounting Principles
Fixed Expense
Reversing Entries
15. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Working Papers
Net Loss
Matching Principle
Accounting Cycle
16. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Partnership Agreement
Preferred Stock
Interim Financial Statements
Natural Business Years
17. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Corporation
Creditors
Risk Tolerance
Shareholders
18. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Owner Withdrawals
Account
Contra Account
Limited Liability Corporation
19. Persons using accounting information who are directly involved in managing the organization.
Business Entity Assumption
Temporary Accounts
Internal users
Compound Journal Entries
20. An expense that changes from period to perio - such as food or gasoline costs.
Account Balance
Varaiable Expense
General Journal
IPO
21. Difference between total debits and total credits (including the beginning balance) for an account.
Revenues
Account Balance
External Transactions
Money Market Account
22. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Stock
Intangible assets
T Account
International Financial Reporting Standards
23. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.
Unearned Revenues
Common Stock
NASDAQ
Shareholders
24. Process of recording transactions in a journal.
Journalizing
NYSE (New York Stock Exchange)
Federal Reserve System
Account
25. 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
Risk
General Journal
Risk Tolerance
Expanded Accounting Equation
26. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Stock
Liabilities
Accounting
Posting Reference Column
27. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Ethical Dilemma
Depreciation
Financial Accounting
Money Market Account
28. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
External Users
Unearned Revenue
Conceptual Framework
Account Balance
29. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Cost Principle
Accounting
Limited Liability Corporation
Expenses
30. Loaning or giving money to a business in orer to save it from bankruptcy.
Present Value
Secured Loan
Bailout
NYSE (New York Stock Exchange)
31. All purpose journal for recording the debits and credits of transactions and events.
Double Entry Accounting
Book Value
General Journal
Auditors
32. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Natural Business Years
Deficit
Sarbanes-Oxley Act (SOX)
Return
33. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Assets
IPO
External Users
Credit
34. 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.
Closing process
NYSE (New York Stock Exchange)
Accrued Revenues
Compound Journal Entries
35. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Money Market Account
Sole Propietorship
Ponzi Scheme
Portfolio Income
36. 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.
NYSE (New York Stock Exchange)
Double Entry Accounting
Partnership
Financial Accounting Standards Board
37. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Account
Measurement Principle
Pro Forma Financial Statement
Debit
38. Income that is available after all of the essential financial commitments have been paid.
Journal
Discretionary Income
SMART Goal
Matching Principle (or Expense Recognition Principle)
39. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Posting
Natural Business Years
Owner - Capital
Acquisition
40. Report of changes in equity over a period; adjusted for increases and for decreases.
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41. Income from investments - including dividends - interest - or the sale of a property.
Matching Principle (or Expense Recognition Principle)
General Journal
Surplus
Portfolio Income
42. 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.
T Account
Corporation
Deficit
Equity
43. Assets pulled out of the business by the owner.
Sarbanes-Oxley Act (SOX)
Owner Withdrawals
Surplus
Risk Tolerance
44. Owners of a corporation who usually receive dividends. Also called shareholders.
Financial Accounting
Journal
Stockholders
Cash Basis Accounting
45. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Ponzi Scheme
Unearned Revenues
Matching Principle (or Expense Recognition Principle)
Portfolio Income
46. A loan that is backed by collateral such as cars - houses - or other assets.
Income Statement
NYSE (New York Stock Exchange)
Adjusted Trial Balance
Secured Loan
47. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Ethics
Long Term Liabilities
Cash Basis Accounting
Annual Financial Statements
48. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Work Sheet
Owner Investment
Posting Reference Column
Accrued Expenses
49. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Reversing Entries
Going-concern Assumptions
Discretionary Income
Work Sheet
50. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.
Fixed Expense
Work Sheet
Matching Principle
Shareholders