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. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






2. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






3. 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.






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






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






6. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






7. A written framework to guide the development - preparation - and interpretation of financial accounting information.






8. Balance sheet that broadly groups assets - liabilities - and equity accounts.






9. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






10. Individuals hired to review financial reports and information systems of organizations.






11. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






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






13. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






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






15. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






16. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






17. Business owned by a single person.






18. 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.






19. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of






20. Rules that specify acceptable accounting practices.






21. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






22. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






23. 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).






24. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






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






27. Happenings that both affect an organization's financial position and can be reliably measured.






28. The first time a company sells shares of its stock to the public.






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






30. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






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






32. 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.






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






34. Record containing all accounts (with amounts) for a business.






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






36. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






37. Persons using accounting information who are directly involved in managing the organization.






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






39. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






40. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






41. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






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






43. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






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






45. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






47. An expense that changes from period to perio - such as food or gasoline costs.






48. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






49. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






50. 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