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. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Owner - Capital
Securities
Accounting Equation
Matching Principle (or Expense Recognition Principle)
2. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Balance Column Account
Common Stock
Ledger
Return on Assets
3. The first time a company sells shares of its stock to the public.
Profit Margin
IPO
Intangible assets
International Financial Reporting Standards
4. Items paid for in advance of receiving their benefits. Classified as assets.
Common Stock
IRA (Individual Retirement Account)
Prepaid Expenses
Long Term Liabilities
5. Area of accounting aimed mainly at serving external users.
Managerial Accounting
Account
Unclassified Balance Sheets
Financial Accounting
6. Income from investments - including dividends - interest - or the sale of a property.
Bailout
Portfolio Income
Common Stock
Partnership
7. 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
8. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Unadjusted Trial Balance
Accrued Expenses
Current Assets
Risk Tolerance
9. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Credit
Accounting Cycle
External Users
International Financial Reporting Standards
10. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Assets
Audit
Time Period Assumptions
Shares
11. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Posting
Corporation
Equity
SMART Goal
12. Persons using accounting information who are directly involved in managing the organization.
Internal users
Stockholders
Equity
Unadjusted Trial Balance
13. Statements that show the effect of proposed transactions and events as if they had occurred.
Natural Business Years
Pro Forma Financial Statement
Generally Accepted Accounting Principles
Internal transactions
14. 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 (or Expense Recognition Principle)
Work Sheet
Annual Financial Statements
Conceptual Framework
15. 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.
Ledger
Net Income
Federal Reserve System
International Financial Reporting Standards
16. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Unearned Revenue
Closing process
Debtors
Annual Financial Statements
17. Assets pulled out of the business by the owner.
Preferred Stock
Owner Withdrawals
Cash Basis Accounting
Net Loss
18. Assets put into the business by the owner.
Owner Investment
Balance Column Account
Corporation
Securities
19. Record containing all accounts (with amounts) for a business.
Balance Sheet
Ethics
Balance Column Account
Ledger
20. Owners of a corporation who usually receive dividends. Also called stockholders.
Debtors
Discretionary Income
Risk Tolerance
Shareholders
21. List of accounts used by a company' includes and identification number for each account.
Surplus
Chart of Accounts
Double Entry Accounting
IRA (Individual Retirement Account)
22. 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).
Straight-line Depreciation Method
Matching Principle
Going-concern Assumptions
Closing Entries
23. 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
Cost-benefit Constraint
Cash Basis Accounting
Risk Tolerance
24. 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.
Equity
Owner - Capital
Long Term Investments
Debt Ratio
25. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Depreciation
Assets
Corporations
Limited Liability Corporation
26. Individuals hired to review financial reports and information systems of organizations.
Auditors
Depreciation
Common Stock
Partnership
27. Rules that specify acceptable accounting practices.
NYSE (New York Stock Exchange)
Generally Accepted Accounting Principles
External Transactions
Cash Basis Accounting
28. 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.
Corporation
Return on Assets
Matching Principle
Owner Investment
29. Persons using accounting information who are not directly involved in running the organization.
External Users
Accounting Period
CD (Certificate of Deposit)
Partnership Agreement
30. Process of recording transactions in a journal.
IRA (Individual Retirement Account)
Journalizing
Accounting Period
Managerial Accounting
31. 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.
Accrued Revenues
Passive Income
Conceptual Framework
Partnership
32. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Partnership
Closing Entries
Cash Basis Accounting
Ethical Dilemma
33. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Expanded Accounting Equation
Going-concern Assumptions
Operating Cycle
Shares
34. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Closing Entries
Post Closing Trial Balance
Risk Tolerance
Ledger
35. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Accrued Expenses
Current Ratio
Working Papers
Passive Income
36. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
NASDAQ
Operating Cycle
International Accounting Standards Board
Accounting
37. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Accounting Period
Accrual Basis Accounting
Monetary Unit Assumption
Classified Balance Sheet
38. Loaning or giving money to a business in orer to save it from bankruptcy.
Unsecured Loan
Bailout
Matching Principle (or Expense Recognition Principle)
Interim Financial Statements
39. An expense that changes from period to perio - such as food or gasoline costs.
Varaiable Expense
Internal transactions
Business Entity Assumption
Owner - Capital
40. A tax deferred account that allows individuals to plan for their retirement.
IRA (Individual Retirement Account)
Current Ratio
Accounting Cycle
Financial Accounting Standards Board
41. Owners of a corporation who usually receive dividends. Also called shareholders.
Profit Margin
Temporary Accounts
Stockholders
Present Value
42. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Materiality Constraint
Monetary Unit Assumption
Measurement Principle
Stock
43. The principle prescribing that revenue is recognized when earned.
Debtors
Revenue Recognition Principle
SEC (Securites and Exchange Commision)
General Journal
44. 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.
Net Income
Adjusting Entry
Revenue Recognition Principle
Income Statement
45. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Credit
Money Market Account
Auditors
Partnership
46. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Work Sheet
CD (Certificate of Deposit)
Permanent Accounts
Secured Loan
47. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Income Summary
Current Ratio
External Users
Matching Principle (or Expense Recognition Principle)
48. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
NYSE (New York Stock Exchange)
Contra Account
Internal users
Cost-benefit Constraint
49. Outflows or using up of assets as part of operations of business to generate sales.
Expenses
Trial balance
Preferred Stock
Working Papers
50. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Double Entry Accounting
Time Period Assumptions
Acquisition
SMART Goal