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






2. Monies (or sums of money) received from an investment; often in percent form.






3. 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.






4. The money left over when income exceeds expenditure.






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






6. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






7. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






8. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






9. Individuals hired to review financial reports and information systems of organizations.






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






11. 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


12. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






13. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






14. Statements that show the effect of proposed transactions and events as if they had occurred.






15. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






17. 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.






18. 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.






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






20. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






21. 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.






22. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






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






24. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






25. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






26. Rules that specify acceptable accounting practices.






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






28. Excess of expenses over revenues for a period.






29. Goals that are specific - measurable - attainable - realistic - and time bound.






30. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






32. 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).






33. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






34. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






35. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






36. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






37. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






39. Assets pulled out of the business by the owner.






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






41. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.






42. A tax deferred account that allows individuals to plan for their retirement.






43. Individuals or organizations entitled to receive payments






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






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






46. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






47. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






48. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






50. Process of recording transactions in a journal.