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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. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Time Period Assumptions
International Accounting Standards Board
Unadjusted Trial Balance
Compound Journal Entries
2. Record containing all accounts (with amounts) for a business.
Secured Loan
Intangible assets
Statement of Cash Flows
Ledger
3. Exchanges of economic value between one entity and another entity.
Partnership
Double Entry Accounting
Securities and Exchange Commission
External Transactions
4. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.
Long Term Liabilities
IRA (Individual Retirement Account)
NYSE (New York Stock Exchange)
Ponzi Scheme
5. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.
Fiscal Year
Securities and Exchange Commission
Straight-line Depreciation Method
International Financial Reporting Standards
6. Journal entries that affect at least three accounts.
Matching Principle
Shares
Expanded Accounting Equation
Compound Journal Entries
7. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Debt Ratio
Corporation
Audit
Unearned Revenue
8. Length of time covered by financial statements; also called reporting period.
Revenue Recognition Principle
Accounting Period
Reversing Entries
Financial Accounting
9. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Mergers
Unadjusted Trial Balance
Risk Tolerance
Deficit
10. The first time a company sells shares of its stock to the public.
Unclassified Balance Sheets
IPO
Plant Assets
Book Value
11. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Passive Income
Owner Withdrawals
Stockholders
Money Market Account
12. Business owned by a single person.
Expenses
Long Term Liabilities
Sole Propietorship
Owner - Capital
13. 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.
Journal
Liabilities
Posting Reference Column
Internal transactions
14. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Discretionary Income
External Users
Accrual Basis Accounting
Plant Assets
15. Statements that show the effect of proposed transactions and events as if they had occurred.
Debt Ratio
Partnership Agreement
Pro Forma Financial Statement
Income Summary
16. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Owner Withdrawals
Partnership
Money Market Account
Unearned Revenues
17. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
International Financial Reporting Standards
Cost-benefit Constraint
Profit Margin
Surplus
18. Individuals or organizations entitled to receive payments
Adjusted Trial Balance
Posting
T Account
Creditors
19. The twelve month period that ends when a company's sales activities are at their lowest point.
Preferred Stock
Natural Business Years
General Journal
Chart of Accounts
20. Principle that assumes transactions and events can be expressed in money units.
Monetary Unit Assumption
Credit
Prepaid Expenses
Portfolio Income
21. Assets pulled out of the business by the owner.
Owner Withdrawals
Varaiable Expense
Full Disclosure Principle
Cash Basis Accounting
22. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Post Closing Trial Balance
Intangible assets
External Users
Balance Sheet
23. Difference between total debits and total credits (including the beginning balance) for an account.
Stockholders
Accounting
Creditors
Account Balance
24. Accounting information is based on cost with potential subsequent adjustments to fair value.
Accounting Equation
Measurement Principle
Present Value
Surplus
25. 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.
Pro Forma Financial Statement
Financial Accounting Standards Board
Compound Journal Entries
Common Stock
26. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Recordkeeping
Trial balance
Net Loss
Long Term Investments
27. The combining of two or more comapnies into one larger company.
Chart of Accounts
Mergers
Federal Reserve System
Limited Liability Corporation
28. Income from investments - including dividends - interest - or the sale of a property.
Portfolio Income
Monetary Unit Assumption
Fixed Expense
Unearned Revenues
29. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Stock
Classified Balance Sheet
Temporary Accounts
Posting Reference Column
30. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Double Entry Accounting
SEC (Securites and Exchange Commision)
Full Disclosure Principle
Account
31. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Chart of Accounts
Intangible assets
Partnership
SEC (Securites and Exchange Commision)
32. A tax deferred account that allows individuals to plan for their retirement.
IRA (Individual Retirement Account)
Posting
Shares
International Accounting Standards Board
33. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Debit
Unearned Revenue
Closing process
Expanded Accounting Equation
34. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
SEC (Securites and Exchange Commision)
Cost Principle
Revenues
Partnership
35. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Accrued Expenses
International Financial Reporting Standards
Sarbanes-Oxley Act (SOX)
Materiality Constraint
36. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Preferred Stock
Business Entity Assumption
Closing process
Classified Balance Sheet
37. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Bailout
Time Period Assumptions
Plant Assets
Measurement Principle
38. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Accounting
Profit Margin
Fiscal Year
Stockholders
39. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
Net Income
Partnership Agreement
Shareholders
Revenues
40. Area of accounting aimed mainly at serving external users.
Current Ratio
Credit
Financial Accounting
Managerial Accounting
41. Business owned by two or more people.
Posting
Chart of Accounts
Accrued Revenues
Partnership
42. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Trial balance
Expanded Accounting Equation
Closing process
Bookkeeping
43. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Shares
Unclassified Balance Sheets
Shareholders
Unadjusted Trial Balance
44. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Securities
Journal
Source Documents
Intangible assets
45. 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.
IRA (Individual Retirement Account)
Bonds
Managerial Accounting
Bookkeeping
46. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Recordkeeping
Income Statement
Ethical Dilemma
Debtors
47. Happenings that both affect an organization's financial position and can be reliably measured.
Owner Investment
Debtors
Risk
Events
48. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Credit
Secured Loan
Accounting
Partnership
49. Report of changes in equity over a period; adjusted for increases and for decreases.
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50. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Net Loss
Securities and Exchange Commission
Ethical Dilemma
Varaiable Expense