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. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Equity
Trial balance
Double Entry Accounting
Fiscal Year
2. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
External Users
Temporary Accounts
Passive Income
Cash Basis Accounting
3. A tax deferred account that allows individuals to plan for their retirement.
IRA (Individual Retirement Account)
Depreciation
Discretionary Income
Closing process
4. Business owned by two or more people.
Unclassified Balance Sheets
Acquisition
Operating Cycle
Partnership
5. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Unsecured Loan
Posting Reference Column
Cost Principle
Debt Ratio
6. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Securities
Profit Margin
Limited Liability Corporation
Mergers
7. 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
Expense Recognition Principle
Natural Business Years
Chart of Accounts
8. Income from investments - including dividends - interest - or the sale of a property.
Portfolio Income
Work Sheet
Events
Fiscal Year
9. 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
Cash Basis Accounting
Account Balance
Sarbanes-Oxley Act (SOX)
Ponzi Scheme
10. A loan that is backed by collateral such as cars - houses - or other assets.
Secured Loan
Discretionary Income
Owner Investment
Cash Basis Accounting
11. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Account
Current Liabilities
Debtors
External Users
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.
Depreciation
Events
Source Documents
IPO
13. All purpose journal for recording the debits and credits of transactions and events.
General Journal
International Financial Reporting Standards
Audit
Federal Reserve System
14. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
NYSE (New York Stock Exchange)
Stock
Financial Accounting Standards Board
Partnership
15. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Common Stock
Matching Principle (or Expense Recognition Principle)
Trial balance
CD (Certificate of Deposit)
16. Rules that specify acceptable accounting practices.
Closing Entries
Post Closing Trial Balance
Generally Accepted Accounting Principles
Portfolio Income
17. The combining of two or more comapnies into one larger company.
Account
Mergers
Pro Forma Financial Statement
Cash Basis Accounting
18. Independent group of full-time members responsible for setting accounting rules.
Closing process
Net Income
Financial Accounting Standards Board
Measurement Principle
19. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Trial balance
Adjusting Entry
Long Term Liabilities
Stockholders
20. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Accounting Period
Long Term Investments
Partnership Agreement
Revenues
21. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Permanent Accounts
Expenses
Internal transactions
External Users
22. Journal entries that affect at least three accounts.
Accounting Cycle
Compound Journal Entries
Securities and Exchange Commission
Debit
23. Income that is available after all of the essential financial commitments have been paid.
Sole Proprietorship
Discretionary Income
Financial Accounting
Common Stock
24. Individuals or organizations entitled to receive payments
Federal Reserve System
Creditors
Double Entry Accounting
Secured Loan
25. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
International Financial Reporting Standards
Net Income
Unearned Revenue
Business Entity Assumption
26. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Unclassified Balance Sheets
Unsecured Loan
Shares
Deficit
27. Report of changes in equity over a period; adjusted for increases and for decreases.
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
28. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Pro Forma Financial Statement
Plant Assets
Equity
Classified Balance Sheet
29. Owners of a corporation who usually receive dividends. Also called shareholders.
Corporations
Stockholders
Net Loss
Managerial Accounting
30. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Credit
Working Papers
Posting
General Journal
31. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Prepaid Expenses
Chart of Accounts
Statement of Cash Flows
Auditors
32. An expense that changes from period to perio - such as food or gasoline costs.
Partnership
Varaiable Expense
NASDAQ
Annual Financial Statements
33. Statements that show the effect of proposed transactions and events as if they had occurred.
Full Disclosure Principle
Pro Forma Financial Statement
Ponzi Scheme
Corporations
34. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Work Sheet
Statement of Owner's Equity
Account
Ledger
35. Excess of expenses over revenues for a period.
NYSE (New York Stock Exchange)
Revenues
Net Loss
Adjusting Entry
36. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Preferred Stock
Acquisition
Accounting Cycle
Ethical Dilemma
37. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Fiscal Year
Present Value
Common Stock
Securities
38. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Creditors
Long Term Investments
Discretionary Income
Materiality Constraint
39. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Debit
Working Papers
Accrued Revenues
Cash Basis Accounting
40. Expenses that remain the same regardless of the circumstances.
Securities and Exchange Commission
Return on Assets
Current Liabilities
Fixed Expense
41. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Conceptual Framework
Stockholders
Unadjusted Trial Balance
Fiscal Year
42. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Equity
Permanent Accounts
Acquisition
Balance Column Account
43. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Surplus
Accounting
Contra Account
Internal transactions
44. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Auditors
Fiscal Year
Temporary Accounts
Long Term Liabilities
45. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Income Statement
Debt Ratio
Account
Cost Principle
46. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Statement of Cash Flows
Passive Income
Full Disclosure Principle
Accounting Period
47. Accounting information is based on cost with potential subsequent adjustments to fair value.
Measurement Principle
Financial Accounting
General Journal
Cost-benefit Constraint
48. 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.
Events
Bonds
Bailout
Cost-benefit Constraint
49. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Post Closing Trial Balance
Unadjusted Trial Balance
Corporation
Adjusted Trial Balance
50. 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.
International Financial Reporting Standards
Equity
Expense Recognition Principle
Passive Income