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. 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.
Plant Assets
Mergers
Income Statement
Managerial Accounting
2. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Present Value
Debtors
Federal Reserve System
Acquisition
3. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
NASDAQ
Working Papers
Income Statement
Expanded Accounting Equation
4. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Matching Principle (or Expense Recognition Principle)
Common Stock
Debit
Revenue Recognition Principle
5. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Conceptual Framework
Intangible assets
Annual Financial Statements
Return
6. Loaning or giving money to a business in orer to save it from bankruptcy.
Long Term Liabilities
Bailout
Stock
Corporation
7. 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.
Account
Chart of Accounts
Owner - Capital
Going-concern Assumptions
8. Difference between total debits and total credits (including the beginning balance) for an account.
Partnership
Time Period Assumptions
Account Balance
Audit
9. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Passive Income
Closing process
Common Stock
Events
10. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Ethics
Book Value
Stock
SEC (Securites and Exchange Commision)
11. 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).
Profit Margin
Account
Present Value
Income Summary
12. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Bookkeeping
Partnership
Balance Sheet
Unearned Revenue
13. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Risk
Deficit
Discretionary Income
Current Assets
14. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Bailout
Accrual Basis Accounting
Partnership Agreement
Materiality Constraint
15. 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.
Securities and Exchange Commission
Discretionary Income
Matching Principle
Creditors
16. The money left over when income exceeds expenditure.
Securities and Exchange Commission
Chart of Accounts
Trial balance
Surplus
17. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Accounting Period
Depreciation
SEC (Securites and Exchange Commision)
Credit
18. 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.
Full Disclosure Principle
Bonds
Financial Accounting
Chart of Accounts
19. A loan that is backed by collateral such as cars - houses - or other assets.
Annual Financial Statements
Secured Loan
Going-concern Assumptions
Internal transactions
20. Monies (or sums of money) received from an investment; often in percent form.
Discretionary Income
Return
Profit Margin
Current Liabilities
21. Record containing all accounts (with amounts) for a business.
Plant Assets
Ethics
Ledger
SEC (Securites and Exchange Commision)
22. A tax deferred account that allows individuals to plan for their retirement.
Journal
Securities and Exchange Commission
Bonds
IRA (Individual Retirement Account)
23. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
CD (Certificate of Deposit)
IRA (Individual Retirement Account)
Accrued Expenses
Current Liabilities
24. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Debit
Partnership
Cash Basis Accounting
Ponzi Scheme
25. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Stock
Adjusting Entry
Unclassified Balance Sheets
Financial Accounting
26. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Mergers
Post Closing Trial Balance
Partnership Agreement
Credit
27. Independent group of full-time members responsible for setting accounting rules.
Financial Accounting Standards Board
Owner Withdrawals
Work Sheet
Source Documents
28. Exchanges of economic value between one entity and another entity.
Securities
Assets
External Transactions
Partnership Agreement
29. Goals that are specific - measurable - attainable - realistic - and time bound.
SMART Goal
Trial balance
Partnership Agreement
Sole Propietorship
30. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
External Transactions
Recordkeeping
Plant Assets
Reversing Entries
31. 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.
Equity
Long Term Investments
International Financial Reporting Standards
International Accounting Standards Board
32. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
IRA (Individual Retirement Account)
Post Closing Trial Balance
Owner Investment
Double Entry Accounting
33. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Book Value
Current Liabilities
General Journal
Ethical Dilemma
34. Owners of a corporation who usually receive dividends. Also called shareholders.
Time Period Assumptions
Common Stock
Credit
Stockholders
35. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Current Ratio
Owner - Capital
Balance Sheet
Balance Column Account
36. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Credit
Owner Investment
Ethical Dilemma
Permanent Accounts
37. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
International Accounting Standards Board
Current Assets
Account
Sarbanes-Oxley Act (SOX)
38. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Balance Sheet
Fixed Expense
Accrued Expenses
Managerial Accounting
39. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Managerial Accounting
Partnership Agreement
Owner - Capital
Present Value
40. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Natural Business Years
Bailout
Revenue Recognition Principle
Money Market Account
41. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Plant Assets
Corporation
Ethical Dilemma
Materiality Constraint
42. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
International Financial Reporting Standards
Ledger
Ethics
Annual Financial Statements
43. List of accounts used by a company' includes and identification number for each account.
Partnership
Generally Accepted Accounting Principles
Deficit
Chart of Accounts
44. 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.
Varaiable Expense
Closing process
International Accounting Standards Board
NYSE (New York Stock Exchange)
45. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Net Loss
Creditors
Accounting
SMART Goal
46. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Shareholders
Limited Liability Corporation
Accrued Expenses
Fixed Expense
47. Assets put into the business by the owner.
Bonds
Owner Investment
Debtors
Adjusting Entry
48. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
International Accounting Standards Board
Work Sheet
Posting
Managerial Accounting
49. Income that is available after all of the essential financial commitments have been paid.
Profit Margin
Stock
Conceptual Framework
Discretionary Income
50. Length of time covered by financial statements; also called reporting period.
Net Income
Trial balance
Accounting Period
Ethics