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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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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.
Accounting Period
Unsecured Loan
Going-concern Assumptions
Trial balance
2. Tool used to show the effects of transactions and events on individual accounts.
Account Balance
Owner Investment
Permanent Accounts
T Account
3. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Unsecured Loan
Account
Current Ratio
Current Liabilities
4. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Classified Balance Sheet
Chart of Accounts
Monetary Unit Assumption
Long Term Liabilities
5. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Liabilities
Corporations
Cash Basis Accounting
Managerial Accounting
6. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Matching Principle (or Expense Recognition Principle)
Working Papers
Shares
NASDAQ
7. A tax deferred account that allows individuals to plan for their retirement.
Debtors
Stock
IRA (Individual Retirement Account)
Balance Column Account
8. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Creditors
Accounting Equation
Credit
Work Sheet
9. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Money Market Account
Ponzi Scheme
SEC (Securites and Exchange Commision)
Accrual Basis Accounting
10. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Financial Accounting
Operating Cycle
Full Disclosure Principle
Audit
11. The first time a company sells shares of its stock to the public.
IPO
Accounting Period
Federal Reserve System
Securities
12. Record containing all accounts (with amounts) for a business.
Ledger
Acquisition
Net Loss
Events
13. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Stock
Sole Propietorship
Journalizing
Sole Proprietorship
14. Uncertainty about expected return.
Debit
Current Liabilities
Prepaid Expenses
Risk
15. Gross increase in equity from a company's business activities that earn income.
Sole Propietorship
Owner Investment
Ledger
Revenues
16. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Varaiable Expense
Ethics
Depreciation
Sole Proprietorship
17. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Book Value
Ethical Dilemma
Chart of Accounts
Statement of Owner's Equity
18. 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.
Accrual Basis Accounting
Liabilities
Acquisition
Financial Accounting Standards Board
19. A loan that is backed by collateral such as cars - houses - or other assets.
Deficit
Plant Assets
IPO
Secured Loan
20. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Operating Cycle
Unclassified Balance Sheets
Balance Sheet
Long Term Liabilities
21. The principle prescribing that revenue is recognized when earned.
Work Sheet
Internal users
Account
Revenue Recognition Principle
22. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Deficit
Stock
Financial Accounting Standards Board
Long Term Liabilities
23. 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
Sarbanes-Oxley Act (SOX)
Unearned Revenues
Posting Reference Column
Going-concern Assumptions
24. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Bookkeeping
Balance Sheet
Return on Assets
Unadjusted Trial Balance
25. List of accounts used by a company' includes and identification number for each account.
Chart of Accounts
IRA (Individual Retirement Account)
Trial balance
Balance Sheet
26. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Owner Withdrawals
Creditors
Passive Income
Partnership
27. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Adjusted Trial Balance
Accounting
Balance Column Account
Discretionary Income
28. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Adjusted Trial Balance
Expenses
Materiality Constraint
Unsecured Loan
29. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Temporary Accounts
Partnership
Unearned Revenue
Annual Financial Statements
30. The combining of two or more comapnies into one larger company.
Owner Investment
Mergers
Shareholders
Trial balance
31. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Journalizing
T Account
Federal Reserve System
Return on Assets
32. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Expense Recognition Principle
Debt Ratio
Owner - Capital
Return
33. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Natural Business Years
General Journal
Corporation
Plant Assets
34. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Debtors
Debt Ratio
Book Value
Long Term Investments
35. Difference between total debits and total credits (including the beginning balance) for an account.
Plant Assets
Account Balance
Straight-line Depreciation Method
Bookkeeping
36. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.
Common Stock
Stockholders
Time Period Assumptions
Debit
37. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Net Income
Liabilities
Corporation
Varaiable Expense
38. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Limited Liability Corporation
Shares
Working Papers
Portfolio Income
39. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
Unsecured Loan
Straight-line Depreciation Method
Risk Tolerance
Trial balance
40. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Acquisition
Partnership
Return on Assets
SEC (Securites and Exchange Commision)
41. An expense that changes from period to perio - such as food or gasoline costs.
Varaiable Expense
NYSE (New York Stock Exchange)
Credit
Limited Liability Corporation
42. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Cost-benefit Constraint
Bonds
Unearned Revenues
Audit
43. Individuals or organizations entitled to receive payments
Classified Balance Sheet
Long Term Liabilities
Creditors
General Journal
44. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Acquisition
Journal
Journalizing
Internal transactions
45. Journal entries that affect at least three accounts.
Corporations
Limited Liability Corporation
Compound Journal Entries
Balance Column Account
46. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Cash Basis Accounting
Assets
Internal transactions
Portfolio Income
47. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Book Value
Audit
Conceptual Framework
Accrual Basis Accounting
48. Statements that show the effect of proposed transactions and events as if they had occurred.
Pro Forma Financial Statement
SEC (Securites and Exchange Commision)
Fiscal Year
Bonds
49. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Debit
Profit Margin
SMART Goal
Income Statement
50. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
NASDAQ
Intangible assets
Expenses
Time Period Assumptions
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