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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. Individuals hired to review financial reports and information systems of organizations.
Financial Accounting Standards Board
Common Stock
Managerial Accounting
Auditors
2. 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.
Reversing Entries
IRA (Individual Retirement Account)
Bailout
Stock
3. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
International Accounting Standards Board
Chart of Accounts
Ethical Dilemma
Double Entry Accounting
4. Gross increase in equity from a company's business activities that earn income.
Annual Financial Statements
Portfolio Income
Internal transactions
Revenues
5. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Revenues
Book Value
Intangible assets
Return
6. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Acquisition
Managerial Accounting
Intangible assets
Debit
7. 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
Prepaid Expenses
Matching Principle (or Expense Recognition Principle)
Risk
8. Happenings that both affect an organization's financial position and can be reliably measured.
Current Ratio
Events
IRA (Individual Retirement Account)
Monetary Unit Assumption
9. Expenses that remain the same regardless of the circumstances.
Long Term Investments
Profit Margin
Fixed Expense
Corporations
10. 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
Unclassified Balance Sheets
International Financial Reporting Standards
SMART Goal
Preferred Stock
11. 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.
Matching Principle
NYSE (New York Stock Exchange)
Sole Propietorship
Bailout
12. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Intangible assets
Income Statement
Depreciation
Common Stock
13. Income that is available after all of the essential financial commitments have been paid.
Fiscal Year
Discretionary Income
Business Entity Assumption
Time Period Assumptions
14. Goals that are specific - measurable - attainable - realistic - and time bound.
Net Loss
Owner - Capital
SMART Goal
Net Income
15. 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.
Matching Principle
Bookkeeping
NASDAQ
Securities
16. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Money Market Account
Return on Assets
Plant Assets
Accounting
17. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Debt Ratio
Partnership
Full Disclosure Principle
Bookkeeping
18. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Trial balance
Unclassified Balance Sheets
Assets
CD (Certificate of Deposit)
19. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Double Entry Accounting
Time Period Assumptions
Debt Ratio
Source Documents
20. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Reversing Entries
Ethics
Balance Column Account
International Financial Reporting Standards
21. Exchanges of economic value between one entity and another entity.
Bookkeeping
Federal Reserve System
Financial Accounting
External Transactions
22. Process of recording transactions in a journal.
Journalizing
Journal
Net Income
Partnership
23. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Ledger
Chart of Accounts
Partnership
Posting Reference Column
24. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
Preferred Stock
International Accounting Standards Board
Owner Investment
Materiality Constraint
25. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Full Disclosure Principle
Return on Assets
Adjusted Trial Balance
Book Value
26. All purpose journal for recording the debits and credits of transactions and events.
Accrued Revenues
Bailout
Portfolio Income
General Journal
27. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Profit Margin
Reversing Entries
Annual Financial Statements
Statement of Owner's Equity
28. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Trial balance
Temporary Accounts
Monetary Unit Assumption
Prepaid Expenses
29. The money left over when income exceeds expenditure.
Risk Tolerance
Current Liabilities
Adjusted Trial Balance
Surplus
30. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Depreciation
Shareholders
Current Assets
Statement of Owner's Equity
31. Owners of a corporation who usually receive dividends. Also called stockholders.
Accounting Equation
Posting Reference Column
Owner - Capital
Shareholders
32. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Cash Basis Accounting
Shares
Risk
Closing process
33. Principle that assumes transactions and events can be expressed in money units.
Posting
Matching Principle
Monetary Unit Assumption
Compound Journal Entries
34. Activities within an organization that can affect the accounting equation.
Working Papers
Money Market Account
Post Closing Trial Balance
Internal transactions
35. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
IRA (Individual Retirement Account)
Long Term Investments
Recordkeeping
Stockholders
36. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Balance Column Account
Permanent Accounts
Unearned Revenue
Audit
37. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Full Disclosure Principle
Trial balance
Prepaid Expenses
Mergers
38. 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
SEC (Securites and Exchange Commision)
Income Statement
NASDAQ
External Transactions
39. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Owner Withdrawals
Assets
Ethical Dilemma
Cost-benefit Constraint
40. Individuals or organizations that owe money.
Debtors
Business Entity Assumption
Accounting
Trial balance
41. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Financial Accounting Standards Board
Current Liabilities
Assets
Conceptual Framework
42. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Recordkeeping
Cost-benefit Constraint
Adjusted Trial Balance
Journal
43. The principle prescribing that revenue is recognized when earned.
Revenue Recognition Principle
Ledger
International Financial Reporting Standards
Chart of Accounts
44. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Contra Account
Shareholders
Balance Column Account
Securities
45. The twelve month period that ends when a company's sales activities are at their lowest point.
Present Value
Audit
Natural Business Years
Matching Principle (or Expense Recognition Principle)
46. Journal entries that affect at least three accounts.
Bookkeeping
Statement of Cash Flows
Compound Journal Entries
Creditors
47. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Unearned Revenues
Assets
Shares
Debt Ratio
48. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Work Sheet
Sole Proprietorship
Straight-line Depreciation Method
Posting Reference Column
49. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Working Papers
Unearned Revenue
CD (Certificate of Deposit)
External Users
50. Uncertainty about expected return.
Posting Reference Column
Book Value
Post Closing Trial Balance
Risk