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. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
NYSE (New York Stock Exchange)
Partnership
International Accounting Standards Board
Passive Income
2. 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.
Risk Tolerance
Equity
Working Papers
IPO
3. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Sarbanes-Oxley Act (SOX)
Securities
Posting Reference Column
Work Sheet
4. 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.
Unearned Revenue
Matching Principle
Account
Going-concern Assumptions
5. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Accrual Basis Accounting
Permanent Accounts
Net Loss
Money Market Account
6. Uncertainty about expected return.
Return on Assets
Portfolio Income
Adjusted Trial Balance
Risk
7. 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
Risk Tolerance
Sarbanes-Oxley Act (SOX)
Profit Margin
CD (Certificate of Deposit)
8. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Profit Margin
Posting
Long Term Investments
Working Papers
9. Gross increase in equity from a company's business activities that earn income.
Risk Tolerance
Posting Reference Column
CD (Certificate of Deposit)
Revenues
10. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Matching Principle
Annual Financial Statements
Owner - Capital
Net Income
11. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Temporary Accounts
Accrued Expenses
Full Disclosure Principle
Partnership
12. Income from investments - including dividends - interest - or the sale of a property.
Return on Assets
Portfolio Income
Expenses
Deficit
13. 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.
Income Statement
Net Loss
Net Income
Journal
14. Exchanges of economic value between one entity and another entity.
Full Disclosure Principle
External Transactions
Liabilities
Recordkeeping
15. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
International Accounting Standards Board
Recordkeeping
Chart of Accounts
Internal transactions
16. Business owned by a single person.
Sole Propietorship
Sarbanes-Oxley Act (SOX)
Common Stock
Financial Accounting
17. The first time a company sells shares of its stock to the public.
Debit
International Accounting Standards Board
Unearned Revenues
IPO
18. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Natural Business Years
General Journal
Long Term Liabilities
Monetary Unit Assumption
19. Area of accounting aimed mainly at serving external users.
Working Papers
Chart of Accounts
Assets
Financial Accounting
20. Record containing all accounts (with amounts) for a business.
Ledger
Sarbanes-Oxley Act (SOX)
Owner Investment
Intangible assets
21. The principle prescribing that revenue is recognized when earned.
Revenue Recognition Principle
Closing Entries
External Users
Debtors
22. 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.
Federal Reserve System
Managerial Accounting
Assets
Double Entry Accounting
23. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Compound Journal Entries
Sole Propietorship
Financial Accounting
Unclassified Balance Sheets
24. Persons using accounting information who are directly involved in managing the organization.
Money Market Account
Posting Reference Column
Fixed Expense
Internal users
25. 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.
International Financial Reporting Standards
Portfolio Income
Journalizing
Full Disclosure Principle
26. Goals that are specific - measurable - attainable - realistic - and time bound.
Net Income
SMART Goal
Balance Sheet
Stock
27. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Owner Investment
Double Entry Accounting
Return
Credit
28. Difference between total debits and total credits (including the beginning balance) for an account.
Portfolio Income
Account Balance
Interim Financial Statements
International Financial Reporting Standards
29. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Assets
Bookkeeping
Debtors
Equity
30. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Current Ratio
Risk Tolerance
Accrued Expenses
Interim Financial Statements
31. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Surplus
Stock
Unearned Revenues
Internal users
32. Assets pulled out of the business by the owner.
Prepaid Expenses
Chart of Accounts
Owner Withdrawals
Temporary Accounts
33. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Sarbanes-Oxley Act (SOX)
Auditors
Pro Forma Financial Statement
Securities and Exchange Commission
34. Tool used to show the effects of transactions and events on individual accounts.
Business Entity Assumption
Full Disclosure Principle
Current Liabilities
T Account
35. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Expanded Accounting Equation
Partnership
Return on Assets
Monetary Unit Assumption
36. Process of recording transactions in a journal.
Revenues
Journalizing
Current Liabilities
Temporary Accounts
37. 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.
Owner - Capital
Bailout
Common Stock
Journal
38. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Book Value
Measurement Principle
Shares
Partnership
39. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Managerial Accounting
Chart of Accounts
Accounting Cycle
T Account
40. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
External Transactions
Going-concern Assumptions
Plant Assets
Return
41. The combining of two or more comapnies into one larger company.
Post Closing Trial Balance
Mergers
Ethics
Deficit
42. The money left over when income exceeds expenditure.
Surplus
Monetary Unit Assumption
Securities and Exchange Commission
External Transactions
43. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Post Closing Trial Balance
Surplus
Ethical Dilemma
Bonds
44. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Debit
T Account
Classified Balance Sheet
Accrual Basis Accounting
45. Length of time covered by financial statements; also called reporting period.
Time Period Assumptions
Accounting Period
Secured Loan
Business Entity Assumption
46. A loan that is backed by collateral such as cars - houses - or other assets.
Securities
Adjusting Entry
Secured Loan
Credit
47. Persons using accounting information who are not directly involved in running the organization.
External Users
Managerial Accounting
Expense Recognition Principle
Accounting Cycle
48. Principle that assumes transactions and events can be expressed in money units.
Monetary Unit Assumption
Balance Column Account
Work Sheet
Internal transactions
49. Business owned by two or more people.
Source Documents
Revenues
Ponzi Scheme
Partnership
50. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Accounting Period
Present Value
Closing process
Unsecured Loan