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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. Accounting information is based on cost with potential subsequent adjustments to fair value.
Ethics
Measurement Principle
Varaiable Expense
Owner Withdrawals
2. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Double Entry Accounting
Secured Loan
Managerial Accounting
Events
3. 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.
Fiscal Year
Limited Liability Corporation
Generally Accepted Accounting Principles
Federal Reserve System
4. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Conceptual Framework
Unadjusted Trial Balance
Posting Reference Column
Revenue Recognition Principle
5. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Discretionary Income
Interim Financial Statements
Sole Propietorship
Measurement Principle
6. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Owner - Capital
Operating Cycle
Posting
Audit
7. Record containing all accounts (with amounts) for a business.
Journalizing
Adjusted Trial Balance
Closing Entries
Ledger
8. Tool used to show the effects of transactions and events on individual accounts.
Owner Withdrawals
Net Income
Sole Proprietorship
T Account
9. Income that is available after all of the essential financial commitments have been paid.
Revenue Recognition Principle
Common Stock
Discretionary Income
Securities
10. 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).
Income Summary
CD (Certificate of Deposit)
Shares
Stock
11. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Ethical Dilemma
IPO
Common Stock
Secured Loan
12. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Work Sheet
Business Entity Assumption
Journalizing
Profit Margin
13. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Full Disclosure Principle
Long Term Liabilities
Expenses
Managerial Accounting
14. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).
Revenue Recognition Principle
Statement of Cash Flows
Closing Entries
Bookkeeping
15. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
International Accounting Standards Board
Sole Proprietorship
Varaiable Expense
CD (Certificate of Deposit)
16. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Partnership Agreement
Depreciation
International Accounting Standards Board
Account
17. 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.
Owner Withdrawals
Straight-line Depreciation Method
Adjusted Trial Balance
Income Statement
18. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Cash Basis Accounting
Unearned Revenue
Conceptual Framework
Account
19. Length of time covered by financial statements; also called reporting period.
Events
IRA (Individual Retirement Account)
Risk
Accounting Period
20. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Work Sheet
Securities
Profit Margin
Return
21. Assets put into the business by the owner.
Preferred Stock
Owner Investment
Debt Ratio
NASDAQ
22. 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.
Cost-benefit Constraint
Intangible assets
Sole Proprietorship
Bonds
23. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
International Financial Reporting Standards
Conceptual Framework
Current Liabilities
Partnership
24. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Financial Accounting
Matching Principle (or Expense Recognition Principle)
Intangible assets
Book Value
25. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Unearned Revenues
Double Entry Accounting
Ethical Dilemma
Source Documents
26. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Plant Assets
Risk Tolerance
Permanent Accounts
Unadjusted Trial Balance
27. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Posting
Monetary Unit Assumption
External Users
Time Period Assumptions
28. Owners of a corporation who usually receive dividends. Also called shareholders.
Stockholders
Liabilities
Unearned Revenues
Internal users
29. 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.
Ledger
Time Period Assumptions
Matching Principle
Auditors
30. Expenses that remain the same regardless of the circumstances.
Intangible assets
Financial Accounting Standards Board
Deficit
Fixed Expense
31. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Unadjusted Trial Balance
Double Entry Accounting
Discretionary Income
Closing process
32. 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
Conceptual Framework
Securities and Exchange Commission
Expanded Accounting Equation
Unadjusted Trial Balance
33. The money left over when income exceeds expenditure.
Income Statement
Creditors
Surplus
Debtors
34. 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.
Materiality Constraint
Corporation
Return
NYSE (New York Stock Exchange)
35. Uncertainty about expected return.
Intangible assets
Risk
Reversing Entries
Journal
36. 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
Matching Principle
Double Entry Accounting
Unclassified Balance Sheets
37. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Acquisition
Accounting Period
Expenses
Adjusting Entry
38. Excess of expenses over revenues for a period.
Recordkeeping
Intangible assets
Owner Investment
Net Loss
39. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Net Loss
Work Sheet
Portfolio Income
Owner Investment
40. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an
Preferred Stock
Time Period Assumptions
Journal
Natural Business Years
41. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Preferred Stock
Fixed Expense
Reversing Entries
Accrual Basis Accounting
42. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Conceptual Framework
Journalizing
Owner Investment
Adjusted Trial Balance
43. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Cost Principle
Pro Forma Financial Statement
Owner Investment
Statement of Owner's Equity
44. A corporation's basic ownership share.
Annual Financial Statements
Common Stock
Shares
Stock
45. Principle that assumes transactions and events can be expressed in money units.
NASDAQ
Partnership
Monetary Unit Assumption
Accounting Period
46. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Risk
Money Market Account
Revenue Recognition Principle
Balance Sheet
47. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Shareholders
Posting Reference Column
Auditors
Stock
48. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Chart of Accounts
Owner - Capital
Pro Forma Financial Statement
Posting
49. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Working Papers
Revenue Recognition Principle
Expenses
General Journal
50. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
SEC (Securites and Exchange Commision)
Reversing Entries
Plant Assets
Bonds