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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. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Limited Liability Corporation
Long Term Investments
Account
Working Papers
2. 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.
Preferred Stock
NYSE (New York Stock Exchange)
Fiscal Year
Cost-benefit Constraint
3. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
Net Income
CD (Certificate of Deposit)
Sole Proprietorship
Current Liabilities
4. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Permanent Accounts
Business Entity Assumption
Long Term Liabilities
Classified Balance Sheet
5. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.
Sole Propietorship
SEC (Securites and Exchange Commision)
Expense Recognition Principle
Debtors
6. Activities within an organization that can affect the accounting equation.
Business Entity Assumption
Internal transactions
Securities
Creditors
7. Loaning or giving money to a business in orer to save it from bankruptcy.
Unearned Revenue
Partnership
Bailout
Ledger
8. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Unsecured Loan
Sole Proprietorship
Present Value
Source Documents
9. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Assets
Corporations
Accounting Equation
Risk Tolerance
10. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Auditors
Book Value
Expense Recognition Principle
Revenue Recognition Principle
11. Persons using accounting information who are directly involved in managing the organization.
SEC (Securites and Exchange Commision)
Internal users
Account
Federal Reserve System
12. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Equity
Credit
Accounting Cycle
Current Liabilities
13. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Audit
CD (Certificate of Deposit)
Temporary Accounts
Account
14. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Materiality Constraint
Unadjusted Trial Balance
Money Market Account
Shares
15. Business owned by one person that is not organized as a corporation.
Fiscal Year
Partnership
Sole Proprietorship
Full Disclosure Principle
16. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Work Sheet
Journalizing
Current Ratio
Securities
17. 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.
Depreciation
Reversing Entries
Statement of Cash Flows
Stock
18. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Return on Assets
Accounting
Preferred Stock
Partnership Agreement
19. 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.
Current Assets
Annual Financial Statements
Ponzi Scheme
Plant Assets
20. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Ethics
Unclassified Balance Sheets
Source Documents
Statement of Owner's Equity
21. 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
NASDAQ
Shares
Working Papers
Unclassified Balance Sheets
22. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Time Period Assumptions
Accrual Basis Accounting
Revenues
Statement of Cash Flows
23. Statements that show the effect of proposed transactions and events as if they had occurred.
Current Assets
Debit
Limited Liability Corporation
Pro Forma Financial Statement
24. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
T Account
Classified Balance Sheet
Auditors
Account Balance
25. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Posting Reference Column
Surplus
Interim Financial Statements
Limited Liability Corporation
26. The twelve month period that ends when a company's sales activities are at their lowest point.
Accrued Expenses
Straight-line Depreciation Method
Balance Column Account
Natural Business Years
27. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Internal users
Closing process
Pro Forma Financial Statement
Plant Assets
28. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Current Ratio
Cost Principle
Balance Column Account
Adjusted Trial Balance
29. All purpose journal for recording the debits and credits of transactions and events.
SMART Goal
CD (Certificate of Deposit)
Current Ratio
General Journal
30. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Journal
Profit Margin
Limited Liability Corporation
Accrued Revenues
31. List of accounts used by a company' includes and identification number for each account.
Preferred Stock
Secured Loan
Chart of Accounts
Return on Assets
32. The principle prescribing that revenue is recognized when earned.
Current Ratio
Chart of Accounts
Revenue Recognition Principle
Unearned Revenue
33. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Portfolio Income
Unearned Revenues
Profit Margin
Posting Reference Column
34. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Journalizing
Going-concern Assumptions
Sole Proprietorship
Securities and Exchange Commission
35. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Income Statement
Return on Assets
Statement of Owner's Equity
Deficit
36. A loan that is backed by collateral such as cars - houses - or other assets.
Unclassified Balance Sheets
Trial balance
Income Statement
Secured Loan
37. Excess of expenses over revenues for a period.
Common Stock
Business Entity Assumption
Net Loss
Financial Accounting
38. Gross increase in equity from a company's business activities that earn income.
Federal Reserve System
Return on Assets
Profit Margin
Revenues
39. Independent group of full-time members responsible for setting accounting rules.
Financial Accounting Standards Board
Acquisition
Posting Reference Column
Permanent Accounts
40. Rules that specify acceptable accounting practices.
Bailout
Sole Propietorship
Time Period Assumptions
Generally Accepted Accounting Principles
41. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Cost-benefit Constraint
Stockholders
Debt Ratio
Bookkeeping
42. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Financial Accounting Standards Board
Reversing Entries
Depreciation
Securities and Exchange Commission
43. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
International Accounting Standards Board
Varaiable Expense
Profit Margin
Classified Balance Sheet
44. Exchanges of economic value between one entity and another entity.
International Financial Reporting Standards
External Transactions
Secured Loan
Preferred Stock
45. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Bonds
Operating Cycle
Generally Accepted Accounting Principles
Shares
46. 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.
Net Income
Discretionary Income
Income Statement
Temporary Accounts
47. 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.
Corporations
Journal
Liabilities
International Accounting Standards Board
48. Assets put into the business by the owner.
Sole Proprietorship
Contra Account
Owner Investment
Partnership
49. The value of a future cash steam discounted at the appropriate market interest rate.
Risk Tolerance
Journalizing
Present Value
Current Liabilities
50. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Audit
Materiality Constraint
Managerial Accounting
Balance Sheet