Test your basic knowledge |

DSST Principles Of Finance

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. Assets pulled out of the business by the owner.






2. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






3. The principle prescribing that revenue is recognized when earned.






4. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






5. A written framework to guide the development - preparation - and interpretation of financial accounting information.






6. Area of accounting aimed mainly at serving external users.






7. Loaning or giving money to a business in orer to save it from bankruptcy.






8. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






9. An expense that changes from period to perio - such as food or gasoline costs.






10. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






11. The combining of two or more comapnies into one larger company.






12. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






13. 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.






14. 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.






15. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






16. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






17. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






18. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






19. Record containing all accounts (with amounts) for a business.






20. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






21. 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.






22. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






23. Process of transferring journal entry information to the ledger; computerized systems automate this process.






24. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






25. Income that is available after all of the essential financial commitments have been paid.






26. Gross increase in equity from a company's business activities that earn income.






27. Process of recording transactions in a journal.






28. List of accounts and balances prepared after period-end adjustments are recorded and posted.






29. The value of a future cash steam discounted at the appropriate market interest rate.






30. Journal entries that affect at least three accounts.






31. 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






32. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






33. Balance sheet that broadly groups assets - liabilities - and equity accounts.






34. Assets put into the business by the owner.






35. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






36. Expenses that remain the same regardless of the circumstances.






37. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






38. Items paid for in advance of receiving their benefits. Classified as assets.






39. The first time a company sells shares of its stock to the public.






40. 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






41. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






42. 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.






43. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.






44. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.






45. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






46. Outflows or using up of assets as part of operations of business to generate sales.






47. A corporation's basic ownership share.






48. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






49. Happenings that both affect an organization's financial position and can be reliably measured.






50. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.