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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. Expenses that remain the same regardless of the circumstances.
Unadjusted Trial Balance
Deficit
Generally Accepted Accounting Principles
Fixed Expense
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.
Corporations
Current Ratio
NYSE (New York Stock Exchange)
Chart of Accounts
3. 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).
Current Liabilities
Liabilities
Operating Cycle
Closing Entries
4. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Partnership
Varaiable Expense
Balance Column Account
Post Closing Trial Balance
5. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
Straight-line Depreciation Method
Owner Withdrawals
Unadjusted Trial Balance
Unsecured Loan
6. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Cash Basis Accounting
Current Ratio
Owner Investment
Credit
7. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Full Disclosure Principle
Owner Withdrawals
Posting
Accrual Basis Accounting
8. Excess of expenses over revenues for a period.
Materiality Constraint
Owner Withdrawals
Business Entity Assumption
Net Loss
9. 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
Internal users
Fiscal Year
Portfolio Income
10. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Return on Assets
Return
Closing process
Owner - Capital
11. Uncertainty about expected return.
International Financial Reporting Standards
Shares
Risk
Double Entry Accounting
12. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Operating Cycle
Account
Securities
Current Assets
13. Difference between total debits and total credits (including the beginning balance) for an account.
Account Balance
Shares
Preferred Stock
Sole Propietorship
14. The principle prescribing that revenue is recognized when earned.
Recordkeeping
Partnership
Securities and Exchange Commission
Revenue Recognition Principle
15. The value of a future cash steam discounted at the appropriate market interest rate.
Temporary Accounts
Cost-benefit Constraint
Matching Principle (or Expense Recognition Principle)
Present Value
16. Record containing all accounts (with amounts) for a business.
Adjusting Entry
Surplus
Ledger
Risk
17. The combining of two or more comapnies into one larger company.
Mergers
Unearned Revenues
Temporary Accounts
Interim Financial Statements
18. Business owned by one person that is not organized as a corporation.
Sole Proprietorship
Corporations
Auditors
Chart of Accounts
19. A loan that is backed by collateral such as cars - houses - or other assets.
Shareholders
Secured Loan
Monetary Unit Assumption
Liabilities
20. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Measurement Principle
Partnership
Working Papers
Stock
21. 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
Creditors
Portfolio Income
Plant Assets
22. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Permanent Accounts
Sole Propietorship
Unsecured Loan
Debt Ratio
23. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Balance Column Account
Going-concern Assumptions
Fiscal Year
Unadjusted Trial Balance
24. The twelve month period that ends when a company's sales activities are at their lowest point.
Audit
Net Income
CD (Certificate of Deposit)
Natural Business Years
25. Exchanges of economic value between one entity and another entity.
Expense Recognition Principle
Risk Tolerance
External Transactions
Statement of Owner's Equity
26. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
CD (Certificate of Deposit)
Current Assets
SEC (Securites and Exchange Commision)
Unadjusted Trial Balance
27. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Unadjusted Trial Balance
Materiality Constraint
Balance Sheet
Bookkeeping
28. The first time a company sells shares of its stock to the public.
SMART Goal
Journalizing
Contra Account
IPO
29. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
International Financial Reporting Standards
Audit
Equity
Unsecured Loan
30. Loaning or giving money to a business in orer to save it from bankruptcy.
Bailout
Operating Cycle
Debt Ratio
Fixed Expense
31. 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
Partnership
Net Loss
Preferred Stock
Source Documents
32. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
External Transactions
Managerial Accounting
Adjusting Entry
CD (Certificate of Deposit)
33. Assets pulled out of the business by the owner.
Return on Assets
Financial Accounting Standards Board
Owner Withdrawals
Time Period Assumptions
34. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Recordkeeping
Source Documents
Risk Tolerance
Time Period Assumptions
35. List of accounts used by a company' includes and identification number for each account.
Long Term Investments
Chart of Accounts
Risk Tolerance
Adjusting Entry
36. Persons using accounting information who are directly involved in managing the organization.
Internal users
Monetary Unit Assumption
Common Stock
IRA (Individual Retirement Account)
37. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Contra Account
Measurement Principle
Stock
Post Closing Trial Balance
38. Assets put into the business by the owner.
Statement of Cash Flows
Owner Investment
Internal transactions
Equity
39. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.
Federal Reserve System
Book Value
Trial balance
Work Sheet
40. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Current Ratio
Limited Liability Corporation
Ethical Dilemma
Managerial Accounting
41. Goals that are specific - measurable - attainable - realistic - and time bound.
Cash Basis Accounting
Financial Accounting
SMART Goal
Intangible assets
42. Gross increase in equity from a company's business activities that earn income.
Revenues
Unsecured Loan
Debit
Mergers
43. Happenings that both affect an organization's financial position and can be reliably measured.
Long Term Liabilities
Business Entity Assumption
Portfolio Income
Events
44. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Profit Margin
Income Statement
Accrued Revenues
Current Liabilities
45. The money left over when income exceeds expenditure.
Unadjusted Trial Balance
Surplus
Deficit
Passive Income
46. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Classified Balance Sheet
Unearned Revenue
Current Assets
Current Liabilities
47. 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.
Operating Cycle
Expense Recognition Principle
Credit
Intangible assets
48. A tax deferred account that allows individuals to plan for their retirement.
IRA (Individual Retirement Account)
Work Sheet
Unsecured Loan
Long Term Liabilities
49. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Work Sheet
Post Closing Trial Balance
Unclassified Balance Sheets
Pro Forma Financial Statement
50. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Owner Withdrawals
Internal transactions
External Users
Partnership Agreement