SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Bailout
Equity
Posting
Balance Sheet
2. List of accounts used by a company' includes and identification number for each account.
Owner Withdrawals
Chart of Accounts
Financial Accounting
Posting Reference Column
3. Items paid for in advance of receiving their benefits. Classified as assets.
Liabilities
Accrued Expenses
Prepaid Expenses
International Financial Reporting Standards
4. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Generally Accepted Accounting Principles
Work Sheet
Mergers
Intangible assets
5. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Double Entry Accounting
Ethics
NYSE (New York Stock Exchange)
Bookkeeping
6. 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.
Annual Financial Statements
Income Statement
Cash Basis Accounting
Ledger
7. Happenings that both affect an organization's financial position and can be reliably measured.
Accounting Cycle
Full Disclosure Principle
Events
Internal transactions
8. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Account
Events
Audit
Risk Tolerance
9. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Cost Principle
Adjusted Trial Balance
Intangible assets
Risk Tolerance
10. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Partnership
NASDAQ
SEC (Securites and Exchange Commision)
Equity
11. Assets pulled out of the business by the owner.
Revenue Recognition Principle
Cost-benefit Constraint
Auditors
Owner Withdrawals
12. 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
Revenue Recognition Principle
Partnership Agreement
NASDAQ
Intangible assets
13. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Acquisition
Net Loss
Unadjusted Trial Balance
Unearned Revenue
14. Persons using accounting information who are directly involved in managing the organization.
Internal users
Reversing Entries
Contra Account
Debit
15. Difference between total debits and total credits (including the beginning balance) for an account.
Double Entry Accounting
Cost-benefit Constraint
Creditors
Account Balance
16. 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.
Securities and Exchange Commission
Financial Accounting Standards Board
Accrual Basis Accounting
Common Stock
17. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Return on Assets
Net Income
Corporations
Preferred Stock
18. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Intangible assets
Prepaid Expenses
Accrual Basis Accounting
Going-concern Assumptions
19. 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
Time Period Assumptions
Full Disclosure Principle
Sarbanes-Oxley Act (SOX)
Closing Entries
20. 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
Passive Income
CD (Certificate of Deposit)
Unearned Revenues
Expanded Accounting Equation
21. 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)
Risk Tolerance
Balance Sheet
Cash Basis Accounting
22. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Closing Entries
Reversing Entries
Shareholders
Debit
23. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Accounting Equation
Owner Withdrawals
Owner Investment
Profit Margin
24. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Permanent Accounts
Account Balance
Contra Account
Ethical Dilemma
25. Uncertainty about expected return.
Creditors
NYSE (New York Stock Exchange)
Risk
Revenues
26. Individuals or organizations that owe money.
Bookkeeping
Partnership
Debtors
Natural Business Years
27. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Cash Basis Accounting
Permanent Accounts
SMART Goal
Trial balance
28. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
External Users
Stock
Prepaid Expenses
Accounting
29. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Cost-benefit Constraint
Owner Withdrawals
Debtors
Temporary Accounts
30. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Sarbanes-Oxley Act (SOX)
Double Entry Accounting
Natural Business Years
Securities and Exchange Commission
31. 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.
Unearned Revenues
Owner - Capital
Federal Reserve System
Profit Margin
32. Excess of expenses over revenues for a period.
Events
Recordkeeping
Net Loss
Unearned Revenues
33. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Internal users
General Journal
Contra Account
Full Disclosure Principle
34. Assets put into the business by the owner.
Owner Investment
General Journal
Measurement Principle
Federal Reserve System
35. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Adjusted Trial Balance
Account Balance
Journalizing
Unadjusted Trial Balance
36. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Fiscal Year
Materiality Constraint
SEC (Securites and Exchange Commision)
Current Liabilities
37. Owners of a corporation who usually receive dividends. Also called shareholders.
Expense Recognition Principle
Stockholders
Permanent Accounts
IRA (Individual Retirement Account)
38. Tool used to show the effects of transactions and events on individual accounts.
Account
Accounting Equation
T Account
Ponzi Scheme
39. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Shares
Time Period Assumptions
Corporation
CD (Certificate of Deposit)
40. Independent group of full-time members responsible for setting accounting rules.
Financial Accounting Standards Board
Long Term Liabilities
International Accounting Standards Board
Going-concern Assumptions
41. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Permanent Accounts
Limited Liability Corporation
Owner Investment
Securities and Exchange Commission
42. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Conceptual Framework
Shareholders
Risk Tolerance
IPO
43. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Going-concern Assumptions
Natural Business Years
Temporary Accounts
Post Closing Trial Balance
44. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Account Balance
Monetary Unit Assumption
Long Term Investments
Current Liabilities
45. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Materiality Constraint
Fiscal Year
Recordkeeping
Statement of Cash Flows
46. A corporation's basic ownership share.
Time Period Assumptions
Acquisition
Common Stock
NYSE (New York Stock Exchange)
47. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Creditors
Working Papers
Contra Account
SMART Goal
48. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Financial Accounting Standards Board
Auditors
Partnership Agreement
Working Papers
49. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Accrued Revenues
Revenues
Current Ratio
Varaiable Expense
50. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
CD (Certificate of Deposit)
Straight-line Depreciation Method
Statement of Owner's Equity
Posting Reference Column