Test your basic knowledge |

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 principle prescribing that revenue is recognized when earned.






2. 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






3. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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






5. 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






6. The money left over when income exceeds expenditure.






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






8. Excess of expenses over revenues for a period.






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






10. Rules that specify acceptable accounting practices.






11. Business owned by a single person.






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






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






14. Activities within an organization that can affect the accounting equation.






15. Journal entries that affect at least three accounts.






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 Matching Principle.






17. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






18. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






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






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






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






22. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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






24. 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


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






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






27. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






28. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






29. 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.






30. 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






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






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






33. Difference between total debits and total credits (including the beginning balance) for an account.






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






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






36. A security representing a share of ownership in a company - providing voting rights - and entitling the holer to a share of the company's success through dividends and/or capital appreciation.






37. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.






38. Exchanges of economic value between one entity and another entity.






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






40. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






41. Record containing all accounts (with amounts) for a business.






42. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






43. Individuals or organizations entitled to receive payments






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






45. 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.






46. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






47. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






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






49. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






50. A corporation's basic ownership share.