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. 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.
Full Disclosure Principle
Chart of Accounts
Federal Reserve System
Generally Accepted Accounting Principles
2. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Reversing Entries
Prepaid Expenses
Mergers
Adjusted Trial Balance
3. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Securities and Exchange Commission
Annual Financial Statements
Chart of Accounts
Shares
4. 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
Expanded Accounting Equation
Permanent Accounts
Working Papers
Unclassified Balance Sheets
5. 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
Statement of Owner's Equity
Sarbanes-Oxley Act (SOX)
IRA (Individual Retirement Account)
Return
6. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Account
External Transactions
Closing Entries
Fixed Expense
7. The combining of two or more comapnies into one larger company.
Compound Journal Entries
Partnership
NYSE (New York Stock Exchange)
Mergers
8. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Corporation
Risk Tolerance
Measurement Principle
Sole Proprietorship
9. Persons using accounting information who are directly involved in managing the organization.
Fixed Expense
Federal Reserve System
Closing Entries
Internal users
10. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Going-concern Assumptions
Expense Recognition Principle
NYSE (New York Stock Exchange)
Conceptual Framework
11. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Owner - Capital
Measurement Principle
Balance Column Account
Business Entity Assumption
12. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Owner Investment
Bailout
Current Liabilities
Balance Sheet
13. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Going-concern Assumptions
Statement of Cash Flows
Trial balance
Creditors
14. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Accounting Cycle
Internal transactions
Acquisition
Account
15. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Unearned Revenue
Managerial Accounting
Post Closing Trial Balance
Accrual Basis Accounting
16. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Full Disclosure Principle
Accrued Expenses
Annual Financial Statements
Deficit
17. Loaning or giving money to a business in orer to save it from bankruptcy.
Bailout
Net Loss
International Financial Reporting Standards
General Journal
18. Process of recording transactions in a journal.
Partnership
Journalizing
Corporations
Sarbanes-Oxley Act (SOX)
19. Report of changes in equity over a period; adjusted for increases and for decreases.
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
20. Assets pulled out of the business by the owner.
Cost-benefit Constraint
Natural Business Years
Ponzi Scheme
Owner Withdrawals
21. 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.
Ponzi Scheme
Source Documents
Portfolio Income
Book Value
22. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Working Papers
Preferred Stock
Limited Liability Corporation
Passive Income
23. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Owner Investment
Balance Sheet
Stock
Measurement Principle
24. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Unadjusted Trial Balance
Partnership Agreement
Unearned Revenues
Closing process
25. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Statement of Cash Flows
Adjusted Trial Balance
Prepaid Expenses
Corporations
26. Individuals hired to review financial reports and information systems of organizations.
Statement of Owner's Equity
Common Stock
Auditors
Natural Business Years
27. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Owner - Capital
Journalizing
Events
Operating Cycle
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
Work Sheet
Accounting Period
NASDAQ
Cash Basis Accounting
29. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Expenses
Shareholders
Permanent Accounts
Accounting Equation
30. Monies (or sums of money) received from an investment; often in percent form.
Common Stock
Return
Owner Investment
Bookkeeping
31. The first time a company sells shares of its stock to the public.
Unadjusted Trial Balance
Owner Withdrawals
Unearned Revenues
IPO
32. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Common Stock
Assets
SEC (Securites and Exchange Commision)
Temporary Accounts
33. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Current Assets
Sole Propietorship
Long Term Liabilities
Securities and Exchange Commission
34. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Measurement Principle
Revenues
Bookkeeping
Acquisition
35. 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.
Expense Recognition Principle
NYSE (New York Stock Exchange)
Varaiable Expense
Accrued Expenses
36. Assets put into the business by the owner.
Owner - Capital
Current Assets
Owner Investment
Ethics
37. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Partnership Agreement
Assets
Accrued Revenues
Unadjusted Trial Balance
38. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Common Stock
Surplus
Posting Reference Column
Current Ratio
39. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Interim Financial Statements
Double Entry Accounting
Return
Adjusting Entry
40. Difference between total debits and total credits (including the beginning balance) for an account.
Unearned Revenues
Time Period Assumptions
Account Balance
Ledger
41. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
External Transactions
Matching Principle (or Expense Recognition Principle)
Posting
Natural Business Years
42. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an
Accounting Period
Closing Entries
Income Statement
Preferred Stock
43. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Corporation
Accounting Period
Income Statement
Annual Financial Statements
44. Length of time covered by financial statements; also called reporting period.
Passive Income
Measurement Principle
Current Liabilities
Accounting Period
45. Gross increase in equity from a company's business activities that earn income.
Securities
Current Liabilities
Revenues
Fiscal Year
46. 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.
Secured Loan
Bonds
Ethical Dilemma
Natural Business Years
47. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Working Papers
Limited Liability Corporation
Classified Balance Sheet
Surplus
48. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
Going-concern Assumptions
Permanent Accounts
Net Income
Balance Sheet
49. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Limited Liability Corporation
Debt Ratio
International Financial Reporting Standards
Bonds
50. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Cost Principle
Business Entity Assumption
Fiscal Year
Income Statement