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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. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Recordkeeping
Unclassified Balance Sheets
Permanent Accounts
Unadjusted Trial Balance
2. The first time a company sells shares of its stock to the public.
IPO
Bonds
Surplus
Corporation
3. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Work Sheet
Closing process
Operating Cycle
Debt Ratio
4. Individuals or organizations that owe money.
SEC (Securites and Exchange Commision)
Debtors
Chart of Accounts
Accounting Cycle
5. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Debit
Matching Principle (or Expense Recognition Principle)
Compound Journal Entries
Fixed Expense
6. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Sole Propietorship
Mergers
Adjusted Trial Balance
Closing Entries
7. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Internal transactions
Debit
Source Documents
NASDAQ
8. Journal entries that affect at least three accounts.
Going-concern Assumptions
Adjusted Trial Balance
Compound Journal Entries
Common Stock
9. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Matching Principle (or Expense Recognition Principle)
Double Entry Accounting
Current Ratio
Partnership
10. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.
Cost-benefit Constraint
Monetary Unit Assumption
Account Balance
Liabilities
11. 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.
Expense Recognition Principle
Money Market Account
Owner - Capital
Debtors
12. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Accrued Expenses
Accounting Equation
Long Term Investments
Auditors
13. Items paid for in advance of receiving their benefits. Classified as assets.
Fixed Expense
Federal Reserve System
Return
Prepaid Expenses
14. Area of accounting aimed mainly at serving external users.
Conceptual Framework
Financial Accounting
CD (Certificate of Deposit)
SEC (Securites and Exchange Commision)
15. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Assets
International Accounting Standards Board
Ethics
Classified Balance Sheet
16. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
SMART Goal
Partnership
Passive Income
Owner - Capital
17. Business owned by two or more people.
Partnership
NYSE (New York Stock Exchange)
Shareholders
International Financial Reporting Standards
18. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Statement of Owner's Equity
Bookkeeping
Conceptual Framework
Limited Liability Corporation
19. The combining of two or more comapnies into one larger company.
Mergers
Cash Basis Accounting
Unearned Revenue
Matching Principle (or Expense Recognition Principle)
20. A loan that is backed by collateral such as cars - houses - or other assets.
Secured Loan
Trial balance
Accounting Period
Income Statement
21. 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.
Closing Entries
Accounting
Accrued Revenues
SMART Goal
22. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Managerial Accounting
Unsecured Loan
Revenue Recognition Principle
Partnership
23. Exchanges of economic value between one entity and another entity.
Money Market Account
Balance Column Account
External Transactions
Accounting Cycle
24. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Long Term Liabilities
NYSE (New York Stock Exchange)
Going-concern Assumptions
Temporary Accounts
25. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Bailout
Balance Sheet
Accrual Basis Accounting
Common Stock
26. Gross increase in equity from a company's business activities that earn income.
Equity
Common Stock
Monetary Unit Assumption
Revenues
27. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Accounting Cycle
Plant Assets
Discretionary Income
Accounting Period
28. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb
Business Entity Assumption
Posting Reference Column
Debt Ratio
NASDAQ
29. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Partnership
Account
Trial balance
Deficit
30. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Adjusted Trial Balance
Temporary Accounts
Fiscal Year
Monetary Unit Assumption
31. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
International Financial Reporting Standards
Pro Forma Financial Statement
Unearned Revenue
Events
32. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Debt Ratio
Partnership Agreement
Statement of Cash Flows
Liabilities
33. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Depreciation
Classified Balance Sheet
Adjusting Entry
Working Papers
34. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Partnership
Work Sheet
Deficit
Closing process
35. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Stock
Accounting Period
Balance Sheet
CD (Certificate of Deposit)
36. Income that is available after all of the essential financial commitments have been paid.
Double Entry Accounting
Shareholders
Discretionary Income
Statement of Owner's Equity
37. All purpose journal for recording the debits and credits of transactions and events.
General Journal
Debt Ratio
IPO
Return on Assets
38. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Work Sheet
Classified Balance Sheet
Financial Accounting
SEC (Securites and Exchange Commision)
39. The value of a future cash steam discounted at the appropriate market interest rate.
Money Market Account
Present Value
Monetary Unit Assumption
Fixed Expense
40. 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.
Interim Financial Statements
Accounting Period
Bonds
Accrued Revenues
41. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Revenues
Ethics
T Account
Deficit
42. Happenings that both affect an organization's financial position and can be reliably measured.
Shareholders
Debt Ratio
Events
Balance Column Account
43. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Depreciation
Mergers
Audit
Owner - Capital
44. The twelve month period that ends when a company's sales activities are at their lowest point.
Expense Recognition Principle
Debt Ratio
Natural Business Years
Limited Liability Corporation
45. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Accounting Equation
Shares
Materiality Constraint
Long Term Investments
46. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
International Accounting Standards Board
Contra Account
Securities
Long Term Liabilities
47. Loaning or giving money to a business in orer to save it from bankruptcy.
Owner Withdrawals
Stockholders
Financial Accounting
Bailout
48. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
CD (Certificate of Deposit)
Partnership
Return on Assets
Corporations
49. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.
Internal transactions
SEC (Securites and Exchange Commision)
Cost Principle
Equity
50. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Temporary Accounts
Creditors
Posting
Credit