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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. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Securities and Exchange Commission
Journal
Materiality Constraint
Accounting Equation
2. 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)
NASDAQ
Assets
Managerial Accounting
3. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
SMART Goal
Long Term Investments
Return on Assets
Depreciation
4. 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.
International Financial Reporting Standards
Stock
Partnership
Current Assets
5. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Acquisition
Long Term Investments
Adjusted Trial Balance
Double Entry Accounting
6. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Unearned Revenues
Securities
Adjusting Entry
Classified Balance Sheet
7. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Credit
Accounting
Stock
Reversing Entries
8. A corporation's basic ownership share.
Matching Principle
Securities
Common Stock
Securities and Exchange Commission
9. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Working Papers
Equity
Accounting Cycle
Bookkeeping
10. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Sarbanes-Oxley Act (SOX)
External Transactions
Classified Balance Sheet
Trial balance
11. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Plant Assets
Long Term Liabilities
Statement of Owner's Equity
Closing Entries
12. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Deficit
Financial Accounting Standards Board
Current Liabilities
Matching Principle
13. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Unearned Revenues
Bailout
Business Entity Assumption
Financial Accounting Standards Board
14. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Double Entry Accounting
International Accounting Standards Board
Closing process
Debt Ratio
15. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Annual Financial Statements
Source Documents
Acquisition
Long Term Liabilities
16. 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
NASDAQ
Going-concern Assumptions
Fiscal Year
17. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Matching Principle (or Expense Recognition Principle)
Plant Assets
Assets
Bookkeeping
18. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Balance Sheet
Ponzi Scheme
Ethical Dilemma
Ledger
19. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Contra Account
Classified Balance Sheet
Posting
Compound Journal Entries
20. 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
NASDAQ
Surplus
Sole Proprietorship
Acquisition
21. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Materiality Constraint
Ethical Dilemma
Revenue Recognition Principle
International Accounting Standards Board
22. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Risk
Measurement Principle
Partnership Agreement
Materiality Constraint
23. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Balance Sheet
Matching Principle (or Expense Recognition Principle)
NYSE (New York Stock Exchange)
Posting
24. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Discretionary Income
Generally Accepted Accounting Principles
Statement of Owner's Equity
Current Liabilities
25. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Owner Withdrawals
Deficit
Measurement Principle
Trial balance
26. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Owner - Capital
Accounting Cycle
Managerial Accounting
Trial balance
27. Individuals hired to review financial reports and information systems of organizations.
Acquisition
Expenses
Closing process
Auditors
28. An expense that changes from period to perio - such as food or gasoline costs.
Varaiable Expense
CD (Certificate of Deposit)
Unearned Revenue
Accounting
29. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Account
Stockholders
Audit
Federal Reserve System
30. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.
Liabilities
Unclassified Balance Sheets
Current Ratio
Work Sheet
31. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Mergers
Portfolio Income
Source Documents
Time Period Assumptions
32. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Depreciation
Profit Margin
Cash Basis Accounting
Creditors
33. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
Expenses
Net Loss
Matching Principle (or Expense Recognition Principle)
International Accounting Standards Board
34. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.
Sole Propietorship
Surplus
Adjusting Entry
Statement of Cash Flows
35. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Working Papers
Business Entity Assumption
Credit
Limited Liability Corporation
36. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Partnership Agreement
Posting
Statement of Cash Flows
Sarbanes-Oxley Act (SOX)
37. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Cash Basis Accounting
Debt Ratio
Shares
SMART Goal
38. Exchanges of economic value between one entity and another entity.
Plant Assets
External Transactions
Sole Proprietorship
Unsecured Loan
39. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
Risk
Equity
CD (Certificate of Deposit)
Classified Balance Sheet
40. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Fiscal Year
Monetary Unit Assumption
Unsecured Loan
Audit
41. Monies (or sums of money) received from an investment; often in percent form.
IPO
Return
Chart of Accounts
Liabilities
42. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Mergers
Unadjusted Trial Balance
Current Ratio
Varaiable Expense
43. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Corporation
Full Disclosure Principle
Posting
Securities and Exchange Commission
44. Outflows or using up of assets as part of operations of business to generate sales.
Owner - Capital
Compound Journal Entries
Expenses
Classified Balance Sheet
45. 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
Shareholders
Accrued Expenses
Expanded Accounting Equation
Present Value
46. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Time Period Assumptions
Unclassified Balance Sheets
Managerial Accounting
Bailout
47. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Managerial Accounting
Full Disclosure Principle
External Users
Passive Income
48. Report of changes in equity over a period; adjusted for increases and for decreases.
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49. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Ponzi Scheme
Chart of Accounts
Return on Assets
Preferred Stock
50. 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.
SMART Goal
Chart of Accounts
Debt Ratio
Matching Principle