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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. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Straight-line Depreciation Method
Working Papers
Managerial Accounting
Accounting Equation
2. The value of a future cash steam discounted at the appropriate market interest rate.
Bookkeeping
Ledger
Time Period Assumptions
Present Value
3. 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.
Bonds
Materiality Constraint
International Financial Reporting Standards
Bailout
4. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Accounting Equation
SEC (Securites and Exchange Commision)
General Journal
Statement of Cash Flows
5. Outflows or using up of assets as part of operations of business to generate sales.
Trial balance
Expenses
Net Loss
Debtors
6. 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).
Temporary Accounts
Revenues
Income Summary
Statement of Cash Flows
7. The combining of two or more comapnies into one larger company.
Matching Principle (or Expense Recognition Principle)
Posting
Mergers
Financial Accounting Standards Board
8. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Time Period Assumptions
Securities and Exchange Commission
Partnership Agreement
Stock
9. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Classified Balance Sheet
Statement of Cash Flows
Risk
Plant Assets
10. A corporation's basic ownership share.
Financial Accounting
Securities
Common Stock
Return
11. Items paid for in advance of receiving their benefits. Classified as assets.
Matching Principle (or Expense Recognition Principle)
Prepaid Expenses
Common Stock
Current Liabilities
12. Happenings that both affect an organization's financial position and can be reliably measured.
Contra Account
Prepaid Expenses
Events
Intangible assets
13. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Posting
Unadjusted Trial Balance
Income Statement
Bonds
14. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Internal users
Operating Cycle
Mergers
Equity
15. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.
Audit
Acquisition
Work Sheet
Adjusting Entry
16. Owners of a corporation who usually receive dividends. Also called shareholders.
Pro Forma Financial Statement
Stockholders
Unearned Revenue
Credit
17. Excess of expenses over revenues for a period.
Net Loss
Limited Liability Corporation
Natural Business Years
Ethical Dilemma
18. Assets pulled out of the business by the owner.
Net Income
T Account
Discretionary Income
Owner Withdrawals
19. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Partnership
Sarbanes-Oxley Act (SOX)
Liabilities
Fiscal Year
20. 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).
Closing Entries
Securities and Exchange Commission
NYSE (New York Stock Exchange)
Partnership Agreement
21. 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
Securities
Debtors
Journalizing
Preferred Stock
22. All purpose journal for recording the debits and credits of transactions and events.
Cost-benefit Constraint
Fiscal Year
Time Period Assumptions
General Journal
23. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Cost Principle
Risk Tolerance
Book Value
Posting
24. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
NYSE (New York Stock Exchange)
Net Income
Ledger
Securities and Exchange Commission
25. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Post Closing Trial Balance
Liabilities
Natural Business Years
Risk
26. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Unclassified Balance Sheets
Double Entry Accounting
Matching Principle
Closing process
27. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Audit
Managerial Accounting
Financial Accounting
Ethics
28. Area of accounting aimed mainly at serving external users.
Accounting Cycle
Cost Principle
Deficit
Financial Accounting
29. Exchanges of economic value between one entity and another entity.
External Transactions
Bonds
Measurement Principle
Passive Income
30. Business owned by one person that is not organized as a corporation.
Work Sheet
Matching Principle
Sole Proprietorship
Mergers
31. Income from investments - including dividends - interest - or the sale of a property.
Portfolio Income
Contra Account
Generally Accepted Accounting Principles
Journal
32. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Accrual Basis Accounting
Ethical Dilemma
Business Entity Assumption
SMART Goal
33. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Unearned Revenue
Plant Assets
Deficit
Unearned Revenues
34. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Securities
Current Ratio
Long Term Investments
Limited Liability Corporation
35. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Posting Reference Column
External Transactions
Accounting Equation
Permanent Accounts
36. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.
Credit
Income Statement
Going-concern Assumptions
Current Assets
37. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Secured Loan
Owner Withdrawals
Balance Column Account
Ethical Dilemma
38. Difference between total debits and total credits (including the beginning balance) for an account.
Statement of Cash Flows
Account Balance
Journal
Compound Journal Entries
39. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Stock
Interim Financial Statements
Ledger
Securities
40. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Partnership
Unsecured Loan
Full Disclosure Principle
Recordkeeping
41. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Acquisition
Passive Income
Accounting
Account Balance
42. Gross increase in equity from a company's business activities that earn income.
NYSE (New York Stock Exchange)
Classified Balance Sheet
Revenues
Income Statement
43. Activities within an organization that can affect the accounting equation.
Adjusting Entry
Internal transactions
Conceptual Framework
Cost Principle
44. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Intangible assets
Net Income
Going-concern Assumptions
Creditors
45. 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
Partnership
Unearned Revenue
Balance Sheet
Sarbanes-Oxley Act (SOX)
46. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Money Market Account
T Account
Bailout
Trial balance
47. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Balance Sheet
Posting Reference Column
Adjusted Trial Balance
Unclassified Balance Sheets
48. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Mergers
Posting Reference Column
Net Loss
Long Term Liabilities
49. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Long Term Investments
Ethical Dilemma
Interim Financial Statements
Partnership Agreement
50. The twelve month period that ends when a company's sales activities are at their lowest point.
NASDAQ
Work Sheet
Natural Business Years
Risk