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. The principle prescribing that revenue is recognized when earned.
Cost-benefit Constraint
Debtors
IPO
Revenue Recognition Principle
2. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Full Disclosure Principle
Plant Assets
Matching Principle (or Expense Recognition Principle)
Straight-line Depreciation Method
3. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted
Interim Financial Statements
Expanded Accounting Equation
Unclassified Balance Sheets
Acquisition
4. Difference between total debits and total credits (including the beginning balance) for an account.
Net Income
IPO
Account Balance
Risk Tolerance
5. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Bonds
Partnership
Return
Ethics
6. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Closing process
Measurement Principle
General Journal
Statement of Cash Flows
7. Gross increase in equity from a company's business activities that earn income.
Adjusting Entry
Financial Accounting Standards Board
Debt Ratio
Revenues
8. Area of accounting aimed mainly at serving external users.
General Journal
Financial Accounting
Money Market Account
Unadjusted Trial Balance
9. 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.
Creditors
Varaiable Expense
Risk Tolerance
Matching Principle
10. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Securities
Statement of Cash Flows
Chart of Accounts
Compound Journal Entries
11. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Accounting Cycle
Ponzi Scheme
Accrued Revenues
Matching Principle (or Expense Recognition Principle)
12. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.
Chart of Accounts
Surplus
Federal Reserve System
Plant Assets
13. The twelve month period that ends when a company's sales activities are at their lowest point.
SMART Goal
Natural Business Years
Account
Debit
14. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Time Period Assumptions
Portfolio Income
Journal
Assets
15. A tax deferred account that allows individuals to plan for their retirement.
Time Period Assumptions
Revenue Recognition Principle
IRA (Individual Retirement Account)
Matching Principle (or Expense Recognition Principle)
16. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Corporation
Liabilities
Current Ratio
Ponzi Scheme
17. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Long Term Liabilities
Interim Financial Statements
Statement of Owner's Equity
Income Summary
18. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Accrual Basis Accounting
Interim Financial Statements
Permanent Accounts
Corporations
19. Exchanges of economic value between one entity and another entity.
External Transactions
Varaiable Expense
Classified Balance Sheet
Partnership Agreement
20. List of accounts used by a company' includes and identification number for each account.
Chart of Accounts
Double Entry Accounting
Accrued Expenses
Balance Column Account
21. The value of a future cash steam discounted at the appropriate market interest rate.
International Accounting Standards Board
Balance Column Account
Present Value
Account Balance
22. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Debt Ratio
Account Balance
SMART Goal
Posting
23. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Account
Bailout
Contra Account
Cost-benefit Constraint
24. Rules that specify acceptable accounting practices.
Matching Principle (or Expense Recognition Principle)
Generally Accepted Accounting Principles
Unearned Revenue
Post Closing Trial Balance
25. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
Straight-line Depreciation Method
Income Summary
Mergers
Deficit
26. 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
Current Ratio
NASDAQ
Revenues
Surplus
27. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Mergers
Securities
Time Period Assumptions
Corporation
28. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Accounting Cycle
Limited Liability Corporation
Surplus
Chart of Accounts
29. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Corporation
Net Income
Stockholders
Permanent Accounts
30. Statements that show the effect of proposed transactions and events as if they had occurred.
Pro Forma Financial Statement
Accounting Equation
CD (Certificate of Deposit)
NYSE (New York Stock Exchange)
31. The combining of two or more comapnies into one larger company.
Mergers
Chart of Accounts
Compound Journal Entries
Securities and Exchange Commission
32. 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)
International Financial Reporting Standards
Accrued Expenses
Chart of Accounts
33. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Current Liabilities
Double Entry Accounting
Interim Financial Statements
NASDAQ
34. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Sole Proprietorship
Journalizing
Time Period Assumptions
Temporary Accounts
35. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
T Account
Working Papers
Debtors
Classified Balance Sheet
36. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Internal transactions
Acquisition
Posting
Income Summary
37. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Annual Financial Statements
Materiality Constraint
Securities and Exchange Commission
Revenue Recognition Principle
38. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Securities and Exchange Commission
NYSE (New York Stock Exchange)
Debt Ratio
Prepaid Expenses
39. Uncertainty about expected return.
Account Balance
Debt Ratio
Deficit
Risk
40. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
SEC (Securites and Exchange Commision)
Plant Assets
Interim Financial Statements
Mergers
41. All purpose journal for recording the debits and credits of transactions and events.
General Journal
Unadjusted Trial Balance
Creditors
Surplus
42. Excess of expenses over revenues for a period.
Income Summary
Events
Net Loss
Portfolio Income
43. The first time a company sells shares of its stock to the public.
Cost Principle
International Accounting Standards Board
Stockholders
IPO
44. Persons using accounting information who are directly involved in managing the organization.
Balance Column Account
Internal users
Liabilities
Equity
45. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Ethical Dilemma
Balance Sheet
Book Value
Business Entity Assumption
46. 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
47. 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.
Balance Column Account
Unearned Revenues
Expenses
Reversing Entries
48. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Journalizing
Net Income
Classified Balance Sheet
Cash Basis Accounting
49. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Depreciation
Current Assets
Unclassified Balance Sheets
Surplus
50. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Book Value
Stock
Double Entry Accounting
Measurement Principle