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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. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






2. Business owned by two or more people.






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






4. Area of accounting aimed mainly at serving the decision-making needs of internal users.






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






6. Process of recording transactions in a journal.






7. Report of changes in equity over a period; adjusted for increases and for decreases.

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






9. List of accounts and balances prepared before accounting adjustments are recorded and posted.






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






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






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






13. 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






14. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






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






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






17. Principle that assumes transactions and events can be expressed in money units.






18. Independent group of full-time members responsible for setting accounting rules.






19. Uncertainty about expected return.






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






21. Statements that show the effect of proposed transactions and events as if they had occurred.






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






23. 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.






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






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






26. 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.






27. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






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






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






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






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






33. Assets put into the business by the owner.






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






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






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






37. A corporation's basic ownership share.






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






39. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






40. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






41. Owners of a corporation who usually receive dividends. Also called shareholders.






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






43. 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.






44. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






45. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






46. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






47. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






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






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






50. 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.