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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. Statements that show the effect of proposed transactions and events as if they had occurred.
Creditors
Debt Ratio
Working Papers
Pro Forma Financial Statement
2. Assets put into the business by the owner.
Journalizing
Owner Investment
Owner Withdrawals
Matching Principle
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 Matching Principle.
Conceptual Framework
Expense Recognition Principle
Long Term Investments
External Users
4. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Full Disclosure Principle
Annual Financial Statements
Financial Accounting Standards Board
Financial Accounting
5. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Bonds
Shares
Trial balance
Statement of Cash Flows
6. 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.
Sarbanes-Oxley Act (SOX)
Reversing Entries
Liabilities
External Transactions
7. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Accounting
NYSE (New York Stock Exchange)
Return on Assets
Fiscal Year
8. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Shares
Net Income
NASDAQ
Conceptual Framework
9. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Business Entity Assumption
Statement of Owner's Equity
Going-concern Assumptions
Common Stock
10. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Passive Income
Partnership
Internal transactions
Discretionary Income
11. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Accounting
Owner Withdrawals
Pro Forma Financial Statement
Ledger
12. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Expanded Accounting Equation
Post Closing Trial Balance
International Financial Reporting Standards
Securities
13. The value of a future cash steam discounted at the appropriate market interest rate.
Varaiable Expense
Depreciation
Present Value
Conceptual Framework
14. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Unclassified Balance Sheets
Time Period Assumptions
Securities and Exchange Commission
Debt Ratio
15. Area of accounting aimed mainly at serving external users.
Financial Accounting
Generally Accepted Accounting Principles
Posting
Secured Loan
16. 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.
Bonds
Matching Principle
Full Disclosure Principle
Auditors
17. Income from investments - including dividends - interest - or the sale of a property.
Statement of Owner's Equity
Sarbanes-Oxley Act (SOX)
Journalizing
Portfolio Income
18. Uncertainty about expected return.
Bailout
Accounting Cycle
Risk
Expense Recognition Principle
19. Exchanges of economic value between one entity and another entity.
External Transactions
Unearned Revenue
Annual Financial Statements
Managerial Accounting
20. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Credit
External Users
Monetary Unit Assumption
Return on Assets
21. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Fiscal Year
Return on Assets
Cash Basis Accounting
Sole Propietorship
22. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Ethics
Account Balance
External Transactions
Bonds
23. Report of changes in equity over a period; adjusted for increases and for decreases.
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24. Business owned by a single person.
Stock
Acquisition
Owner - Capital
Sole Propietorship
25. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Pro Forma Financial Statement
Monetary Unit Assumption
Accrual Basis Accounting
Time Period Assumptions
26. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Adjusted Trial Balance
Journalizing
Income Summary
Source Documents
27. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Natural Business Years
Work Sheet
Audit
Accrued Expenses
28. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Matching Principle (or Expense Recognition Principle)
SEC (Securites and Exchange Commision)
Risk Tolerance
Limited Liability Corporation
29. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Journal
Deficit
Permanent Accounts
Post Closing Trial Balance
30. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Reversing Entries
Work Sheet
Fixed Expense
Depreciation
31. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Audit
Posting Reference Column
SEC (Securites and Exchange Commision)
Recordkeeping
32. A tax deferred account that allows individuals to plan for their retirement.
Portfolio Income
Financial Accounting
IRA (Individual Retirement Account)
Income Summary
33. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Long Term Investments
Ethical Dilemma
Credit
Recordkeeping
34. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Operating Cycle
Accrual Basis Accounting
Matching Principle
Journalizing
35. Length of time covered by financial statements; also called reporting period.
Debtors
Statement of Owner's Equity
Accounting Period
Materiality Constraint
36. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
Accounting Period
Matching Principle
General Journal
International Accounting Standards Board
37. Goals that are specific - measurable - attainable - realistic - and time bound.
SMART Goal
Time Period Assumptions
Ledger
Owner Investment
38. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Equity
Plant Assets
Creditors
Temporary Accounts
39. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Stock
Corporation
Net Loss
Conceptual Framework
40. 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.
NYSE (New York Stock Exchange)
Generally Accepted Accounting Principles
Ethical Dilemma
General Journal
41. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Reversing Entries
Creditors
Unsecured Loan
Going-concern Assumptions
42. Business owned by two or more people.
Expanded Accounting Equation
Partnership
Adjusted Trial Balance
Ethics
43. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Closing process
Expenses
Financial Accounting
Classified Balance Sheet
44. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
Cash Basis Accounting
Varaiable Expense
Net Income
Reversing Entries
45. The money left over when income exceeds expenditure.
Securities and Exchange Commission
Credit
Classified Balance Sheet
Surplus
46. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Profit Margin
Accounting Equation
Unearned Revenue
Mergers
47. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Sole Proprietorship
Revenues
Plant Assets
Adjusted Trial Balance
48. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Unadjusted Trial Balance
Corporations
Money Market Account
Unearned Revenues
49. Individuals hired to review financial reports and information systems of organizations.
Sole Propietorship
Events
Accrued Expenses
Auditors
50. Persons using accounting information who are not directly involved in running the organization.
NYSE (New York Stock Exchange)
External Users
Financial Accounting Standards Board
IRA (Individual Retirement Account)