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






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






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






4. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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






6. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






7. 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).






8. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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






10. Difference between total debits and total credits (including the beginning balance) for an account.






11. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.






12. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.






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






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






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.






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






17. 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.






18. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






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






20. Business owned by a single person.






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






22. Activities within an organization that can affect the accounting equation.






23. The twelve month period that ends when a company's sales activities are at their lowest point.






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






25. Persons using accounting information who are not directly involved in running the organization.






26. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






27. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






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






29. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






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






31. A loan that is backed by collateral such as cars - houses - or other assets.






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






33. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






34. Tool used to show the effects of transactions and events on individual accounts.






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






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






37. Income from investments - including dividends - interest - or the sale of a property.






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






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






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






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






42. 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.






43. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






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






45. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






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






47. Individuals or organizations that owe money.






48. All purpose journal for recording the debits and credits of transactions and events.






49. Exchanges of economic value between one entity and another entity.






50. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.