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DSST Principles Of Finance
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Subjects
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dsst
,
business-skills
Instructions:
Answer 50 questions in 15 minutes.
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study here
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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. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Time Period Assumptions
Owner - Capital
Financial Accounting
Current Assets
2. Assets pulled out of the business by the owner.
Owner Withdrawals
Time Period Assumptions
Risk Tolerance
Compound Journal Entries
3. Length of time covered by financial statements; also called reporting period.
Ledger
Internal transactions
Closing Entries
Accounting Period
4. Activities within an organization that can affect the accounting equation.
Unearned Revenue
T Account
Adjusting Entry
Internal transactions
5. Exchanges of economic value between one entity and another entity.
Expanded Accounting Equation
Return on Assets
Accrued Expenses
External Transactions
6. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Post Closing Trial Balance
Current Ratio
Materiality Constraint
Securities and Exchange Commission
7. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Partnership Agreement
Bookkeeping
Credit
Varaiable Expense
8. Owners of a corporation who usually receive dividends. Also called stockholders.
Journal
Securities
Shareholders
Partnership Agreement
9. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Deficit
Journal
Unearned Revenue
Debit
10. The money left over when income exceeds expenditure.
NASDAQ
Chart of Accounts
External Transactions
Surplus
11. An expense that changes from period to perio - such as food or gasoline costs.
Partnership
Liabilities
Varaiable Expense
Reversing Entries
12. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
SEC (Securites and Exchange Commision)
External Users
Current Ratio
SMART Goal
13. 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.
Monetary Unit Assumption
Income Statement
Internal users
T Account
14. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Post Closing Trial Balance
Acquisition
Accounting Equation
Ledger
15. Individuals or organizations that owe money.
Ethical Dilemma
Fixed Expense
Cash Basis Accounting
Debtors
16. Statements that show the effect of proposed transactions and events as if they had occurred.
Pro Forma Financial Statement
Stockholders
Temporary Accounts
Ethical Dilemma
17. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Measurement Principle
External Users
Posting Reference Column
Long Term Investments
18. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.
Expense Recognition Principle
Long Term Liabilities
Cost Principle
Money Market Account
19. 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.
Acquisition
Annual Financial Statements
Expense Recognition Principle
Owner - Capital
20. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Time Period Assumptions
Ethical Dilemma
Return on Assets
Accounting Equation
21. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Return
Federal Reserve System
Financial Accounting Standards Board
Intangible assets
22. Items paid for in advance of receiving their benefits. Classified as assets.
Accrued Expenses
Reversing Entries
Revenue Recognition Principle
Prepaid Expenses
23. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Partnership
Work Sheet
IPO
Post Closing Trial Balance
24. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
NYSE (New York Stock Exchange)
Mergers
Depreciation
Return on Assets
25. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
Common Stock
Auditors
Stock
CD (Certificate of Deposit)
26. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Full Disclosure Principle
Shares
Account Balance
Acquisition
27. 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.
Accounting Period
Reversing Entries
Double Entry Accounting
Corporations
28. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Debit
Ledger
Cost-benefit Constraint
Preferred Stock
29. The twelve month period that ends when a company's sales activities are at their lowest point.
Natural Business Years
Debt Ratio
Measurement Principle
Intangible assets
30. Happenings that both affect an organization's financial position and can be reliably measured.
Managerial Accounting
Events
Current Assets
Classified Balance Sheet
31. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
International Accounting Standards Board
Corporation
Debit
Current Liabilities
32. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Bonds
Passive Income
Posting Reference Column
Plant Assets
33. 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.
IRA (Individual Retirement Account)
Unearned Revenue
Ponzi Scheme
Cost Principle
34. Independent group of full-time members responsible for setting accounting rules.
Current Ratio
Financial Accounting Standards Board
International Accounting Standards Board
Pro Forma Financial Statement
35. Income from investments - including dividends - interest - or the sale of a property.
CD (Certificate of Deposit)
External Transactions
International Accounting Standards Board
Portfolio Income
36. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Financial Accounting Standards Board
Balance Column Account
Debit
Annual Financial Statements
37. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Bookkeeping
Internal users
IPO
Return on Assets
38. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Prepaid Expenses
Equity
Money Market Account
Shareholders
39. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Double Entry Accounting
Journalizing
Operating Cycle
Surplus
40. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Classified Balance Sheet
Debt Ratio
Unsecured Loan
Managerial Accounting
41. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Reversing Entries
Net Income
Classified Balance Sheet
Operating Cycle
42. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Credit
Profit Margin
IRA (Individual Retirement Account)
Federal Reserve System
43. Loaning or giving money to a business in orer to save it from bankruptcy.
Fiscal Year
Bailout
Pro Forma Financial Statement
Sole Propietorship
44. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Securities
Balance Column Account
Unearned Revenue
Accrual Basis Accounting
45. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Fiscal Year
Unclassified Balance Sheets
Debtors
Unsecured Loan
46. Individuals or organizations entitled to receive payments
Creditors
Time Period Assumptions
Accounting Equation
SMART Goal
47. 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.
Financial Accounting
Expense Recognition Principle
Equity
Audit
48. Outflows or using up of assets as part of operations of business to generate sales.
SEC (Securites and Exchange Commision)
Deficit
Expenses
Ethical Dilemma
49. A corporation's basic ownership share.
Common Stock
Current Liabilities
Post Closing Trial Balance
Cash Basis Accounting
50. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Classified Balance Sheet
Generally Accepted Accounting Principles
Securities
Money Market Account
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