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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. The combining of two or more comapnies into one larger company.






2. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






4. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






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






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






7. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






8. 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.






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






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






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






12. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






13. Area of accounting aimed mainly at serving external users.






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






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

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16. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






17. The money left over when income exceeds expenditure.






18. A loan that is backed by collateral such as cars - houses - or other assets.






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






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






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






22. Accounting information is based on cost with potential subsequent adjustments to fair value.






23. 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






24. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






25. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






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






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






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






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






30. Gross increase in equity from a company's business activities that earn income.






31. Income from investments - including dividends - interest - or the sale of a property.






32. 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.






33. Monies (or sums of money) received from an investment; often in percent form.






34. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






35. 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).






36. Length of time covered by financial statements; also called reporting period.






37. 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.






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






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






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






41. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






42. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






44. 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).






45. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






47. Individuals or organizations that owe money.






48. A tax deferred account that allows individuals to plan for their retirement.






49. List of accounts and balances prepared after period-end adjustments are recorded and posted.






50. A legal entity that is seperate from its owners.







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