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Test your basic knowledge |
DSST Principles Of Finance
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Subjects
:
dsst
,
business-skills
Instructions:
Answer 50 questions in 15 minutes.
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study here
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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. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Securities
Operating Cycle
Classified Balance Sheet
Audit
2. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Audit
Profit Margin
Temporary Accounts
Full Disclosure Principle
3. Record containing all accounts (with amounts) for a business.
External Transactions
Matching Principle (or Expense Recognition Principle)
Ledger
Statement of Owner's Equity
4. The twelve month period that ends when a company's sales activities are at their lowest point.
Account
Natural Business Years
Net Income
Unearned Revenue
5. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.
Passive Income
Temporary Accounts
Common Stock
Securities
6. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Prepaid Expenses
Journalizing
Partnership
Straight-line Depreciation Method
7. 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
NYSE (New York Stock Exchange)
Adjusted Trial Balance
Fiscal Year
8. 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.
Matching Principle (or Expense Recognition Principle)
Posting
Accounting
NYSE (New York Stock Exchange)
9. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Fiscal Year
Straight-line Depreciation Method
Time Period Assumptions
External Transactions
10. Excess of expenses over revenues for a period.
Net Loss
Deficit
Shares
Equity
11. Expenses that remain the same regardless of the circumstances.
Fixed Expense
Cost Principle
Plant Assets
Portfolio Income
12. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Limited Liability Corporation
Owner Withdrawals
Journalizing
Managerial Accounting
13. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Debit
Income Summary
Time Period Assumptions
Balance Sheet
14. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Adjusted Trial Balance
Account
Time Period Assumptions
Unsecured Loan
15. Gross increase in equity from a company's business activities that earn income.
Discretionary Income
Revenues
Contra Account
Varaiable Expense
16. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
T Account
Internal transactions
Monetary Unit Assumption
Ethical Dilemma
17. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Posting
Net Loss
Credit
Recordkeeping
18. 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.
Surplus
Risk Tolerance
Risk
Owner - Capital
19. Business owned by two or more people.
Corporation
Sole Propietorship
Partnership
Secured Loan
20. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Double Entry Accounting
Classified Balance Sheet
Generally Accepted Accounting Principles
Deficit
21. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Long Term Liabilities
Statement of Owner's Equity
Unclassified Balance Sheets
Discretionary Income
22. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Credit
Risk
Net Income
Internal users
23. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Time Period Assumptions
SMART Goal
Secured Loan
Closing process
24. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Adjusted Trial Balance
Recordkeeping
Working Papers
Revenue Recognition Principle
25. 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
Accrual Basis Accounting
Trial balance
Adjusting Entry
26. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Matching Principle
Passive Income
Assets
Statement of Cash Flows
27. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Mergers
Corporation
Debit
Stock
28. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Current Liabilities
Recordkeeping
Source Documents
Ponzi Scheme
29. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Shareholders
Depreciation
Pro Forma Financial Statement
Profit Margin
30. Difference between total debits and total credits (including the beginning balance) for an account.
Measurement Principle
Account Balance
Accounting Cycle
Liabilities
31. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Accounting Period
Cost-benefit Constraint
Securities and Exchange Commission
Money Market Account
32. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Managerial Accounting
Securities
Adjusted Trial Balance
Permanent Accounts
33. Owners of a corporation who usually receive dividends. Also called shareholders.
Cost-benefit Constraint
Long Term Investments
Stockholders
Stock
34. Independent group of full-time members responsible for setting accounting rules.
External Users
Partnership
Audit
Financial Accounting Standards Board
35. Length of time covered by financial statements; also called reporting period.
Posting
Conceptual Framework
Managerial Accounting
Accounting Period
36. A loan that is backed by collateral such as cars - houses - or other assets.
Secured Loan
Portfolio Income
Permanent Accounts
Bonds
37. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Accrual Basis Accounting
Ethical Dilemma
Income Summary
Profit Margin
38. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Common Stock
Work Sheet
Double Entry Accounting
Internal users
39. The value of a future cash steam discounted at the appropriate market interest rate.
Fiscal Year
Bailout
Natural Business Years
Present Value
40. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Stockholders
Accounting Cycle
Owner - Capital
Revenue Recognition Principle
41. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Revenue Recognition Principle
Sole Proprietorship
Compound Journal Entries
Journal
42. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Long Term Liabilities
Accounting Period
Profit Margin
Balance Sheet
43. Report of changes in equity over a period; adjusted for increases and for decreases.
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44. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Internal users
Plant Assets
Statement of Owner's Equity
Temporary Accounts
45. Individuals hired to review financial reports and information systems of organizations.
Unsecured Loan
Auditors
Closing Entries
Accrued Revenues
46. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Audit
Expenses
Limited Liability Corporation
Source Documents
47. Individuals or organizations entitled to receive payments
Owner - Capital
Account
Creditors
Accounting Period
48. Rules that specify acceptable accounting practices.
Accounting Period
Common Stock
Generally Accepted Accounting Principles
Securities and Exchange Commission
49. 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
Financial Accounting
Net Income
Preferred Stock
Owner Investment
50. Assets pulled out of the business by the owner.
Common Stock
Owner Withdrawals
Current Liabilities
Financial Accounting Standards Board
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