Test your basic knowledge |

DSST Principles Of Finance

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. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






2. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






3. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.






4. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






5. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






6. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






7. 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.






8. Principle that assumes transactions and events can be expressed in money units.






9. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






10. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






11. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






12. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






13. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






14. 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.






15. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






16. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






17. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






18. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






19. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






20. The money left over when income exceeds expenditure.






21. An expense that changes from period to perio - such as food or gasoline costs.






22. Income that is available after all of the essential financial commitments have been paid.






23. A loan that is backed by collateral such as cars - houses - or other assets.






24. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






25. Individuals or organizations that owe money.






26. Business owned by one person that is not organized as a corporation.






27. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






28. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






29. Expenses that remain the same regardless of the circumstances.






30. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






31. A corporation's basic ownership share.






32. Happenings that both affect an organization's financial position and can be reliably measured.






33. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






34. 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.






35. A tax deferred account that allows individuals to plan for their retirement.






36. List of accounts and balances prepared after period-end adjustments are recorded and posted.






37. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






38. The first time a company sells shares of its stock to the public.






39. Report of changes in equity over a period; adjusted for increases and for decreases.


40. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






41. Individuals hired to review financial reports and information systems of organizations.






42. 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).






43. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






44. 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.






45. Income from investments - including dividends - interest - or the sale of a property.






46. Tool used to show the effects of transactions and events on individual accounts.






47. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






48. Assets pulled out of the business by the owner.






49. 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.






50. 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.