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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. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






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






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






4. Business owned by two or more people.






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






6. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






7. 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






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






9. 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






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






11. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






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






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






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






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






16. Rules that specify acceptable accounting practices.






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






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






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






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






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






22. Journal entries that affect at least three accounts.






23. Income that is available after all of the essential financial commitments have been paid.






24. Individuals or organizations entitled to receive payments






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






26. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






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

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28. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






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






31. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






32. An expense that changes from period to perio - such as food or gasoline costs.






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






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






35. Excess of expenses over revenues for a period.






36. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






37. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






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






39. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






40. Expenses that remain the same regardless of the circumstances.






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






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






43. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






44. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






46. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






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






48. 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.






49. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






50. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.