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. 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.
Matching Principle
Secured Loan
Accounting Equation
Unearned Revenues
2. The twelve month period that ends when a company's sales activities are at their lowest point.
Natural Business Years
Owner Withdrawals
Partnership
Current Assets
3. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Classified Balance Sheet
Income Statement
Managerial Accounting
Accounting Equation
4. The value of a future cash steam discounted at the appropriate market interest rate.
Adjusted Trial Balance
Statement of Owner's Equity
Unsecured Loan
Present Value
5. Difference between total debits and total credits (including the beginning balance) for an account.
International Financial Reporting Standards
Straight-line Depreciation Method
Account Balance
Ponzi Scheme
6. Business owned by two or more people.
Partnership
Monetary Unit Assumption
Natural Business Years
Ponzi Scheme
7. 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
Partnership Agreement
Accrued Revenues
Expanded Accounting Equation
Preferred Stock
8. Gross increase in equity from a company's business activities that earn income.
Revenues
Partnership
Money Market Account
Balance Sheet
9. 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
Profit Margin
Preferred Stock
Sole Proprietorship
Journal
10. Business owned by a single person.
Sole Propietorship
Partnership Agreement
Creditors
CD (Certificate of Deposit)
11. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Account Balance
Expense Recognition Principle
Materiality Constraint
Balance Sheet
12. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Work Sheet
Adjusted Trial Balance
Posting
Journal
13. Record containing all accounts (with amounts) for a business.
Shares
Conceptual Framework
Posting
Ledger
14. Independent group of full-time members responsible for setting accounting rules.
Internal transactions
Debit
Financial Accounting Standards Board
Acquisition
15. Activities within an organization that can affect the accounting equation.
Fixed Expense
Ledger
Internal transactions
Going-concern Assumptions
16. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Compound Journal Entries
Passive Income
Time Period Assumptions
Business Entity Assumption
17. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).
Temporary Accounts
Accrued Revenues
Time Period Assumptions
Income Summary
18. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
Acquisition
International Accounting Standards Board
Debit
Current Ratio
19. Journal entries that affect at least three accounts.
Compound Journal Entries
Posting
Financial Accounting
Classified Balance Sheet
20. Accounting information is based on cost with potential subsequent adjustments to fair value.
Securities
General Journal
Measurement Principle
Internal users
21. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Stock
Current Liabilities
Return on Assets
Ethical Dilemma
22. List of accounts and balances prepared before accounting adjustments are recorded and posted.
IRA (Individual Retirement Account)
Expenses
Unadjusted Trial Balance
Accounting Period
23. 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.
Accounting Equation
Ledger
Expense Recognition Principle
Accrued Revenues
24. Assets pulled out of the business by the owner.
Owner Withdrawals
Ledger
Partnership Agreement
Full Disclosure Principle
25. A corporation's basic ownership share.
Common Stock
Closing Entries
Partnership Agreement
Profit Margin
26. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Unclassified Balance Sheets
CD (Certificate of Deposit)
Adjusted Trial Balance
Present Value
27. Principle that assumes transactions and events can be expressed in money units.
Monetary Unit Assumption
NYSE (New York Stock Exchange)
Secured Loan
Revenue Recognition Principle
28. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Audit
Compound Journal Entries
Accrued Expenses
Accrual Basis Accounting
29. 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
Source Documents
Expanded Accounting Equation
NASDAQ
Ethical Dilemma
30. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Bookkeeping
Ponzi Scheme
Temporary Accounts
Federal Reserve System
31. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Temporary Accounts
Ledger
Chart of Accounts
Work Sheet
32. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Debit
Sole Proprietorship
Present Value
SEC (Securites and Exchange Commision)
33. Goals that are specific - measurable - attainable - realistic - and time bound.
Permanent Accounts
Federal Reserve System
SMART Goal
Balance Column Account
34. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Events
Creditors
Return on Assets
SEC (Securites and Exchange Commision)
35. Expenses that remain the same regardless of the circumstances.
Posting
Fixed Expense
Corporations
Profit Margin
36. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Corporation
Journalizing
Bonds
Operating Cycle
37. Excess of expenses over revenues for a period.
Net Loss
Risk Tolerance
Double Entry Accounting
Time Period Assumptions
38. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Assets
Money Market Account
Adjusted Trial Balance
Portfolio Income
39. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Account
Owner Withdrawals
Sole Propietorship
Stockholders
40. Loaning or giving money to a business in orer to save it from bankruptcy.
Bailout
Chart of Accounts
Annual Financial Statements
Owner Investment
41. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Sole Propietorship
Source Documents
Unclassified Balance Sheets
Common Stock
42. Individuals or organizations entitled to receive payments
Sole Propietorship
Audit
Creditors
Common Stock
43. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Current Liabilities
IPO
Double Entry Accounting
Working Papers
44. Persons using accounting information who are directly involved in managing the organization.
Secured Loan
Internal users
Adjusted Trial Balance
Events
45. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
SEC (Securites and Exchange Commision)
Deficit
Annual Financial Statements
Risk Tolerance
46. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Preferred Stock
Internal users
External Transactions
Fiscal Year
47. Owners of a corporation who usually receive dividends. Also called stockholders.
Corporations
Shareholders
Statement of Cash Flows
Accounting Period
48. Individuals or organizations that owe money.
Stock
Ethics
Debtors
Post Closing Trial Balance
49. Tool used to show the effects of transactions and events on individual accounts.
Closing Entries
T Account
Creditors
Trial balance
50. An expense that changes from period to perio - such as food or gasoline costs.
Risk Tolerance
Business Entity Assumption
Monetary Unit Assumption
Varaiable Expense