SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. Business owned by two or more people.
Account Balance
Double Entry Accounting
Sole Propietorship
Partnership
2. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Pro Forma Financial Statement
Owner - Capital
Accrued Revenues
Trial balance
3. Happenings that both affect an organization's financial position and can be reliably measured.
Events
CD (Certificate of Deposit)
Return on Assets
NYSE (New York Stock Exchange)
4. Loaning or giving money to a business in orer to save it from bankruptcy.
Expanded Accounting Equation
Unearned Revenues
Bailout
Chart of Accounts
5. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Acquisition
Financial Accounting
Classified Balance Sheet
Cost-benefit Constraint
6. 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.
NASDAQ
Varaiable Expense
Bonds
Money Market Account
7. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Closing process
Matching Principle (or Expense Recognition Principle)
Common Stock
Accounting
8. Journal entries that affect at least three accounts.
Compound Journal Entries
Adjusting Entry
Corporations
Bonds
9. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Accounting Cycle
T Account
Accrued Revenues
Common Stock
10. Business owned by a single person.
Book Value
Posting
Sole Propietorship
Fiscal Year
11. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Bookkeeping
Acquisition
Permanent Accounts
Materiality Constraint
12. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.
Measurement Principle
Ethics
Closing process
Ponzi Scheme
13. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Reversing Entries
Limited Liability Corporation
Cost-benefit Constraint
Natural Business Years
14. 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.
Operating Cycle
Long Term Investments
Federal Reserve System
Sole Proprietorship
15. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Bookkeeping
Deficit
Unclassified Balance Sheets
Materiality Constraint
16. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
External Users
Bookkeeping
Debtors
Recordkeeping
17. List of accounts used by a company' includes and identification number for each account.
Limited Liability Corporation
Chart of Accounts
Trial balance
Financial Accounting Standards Board
18. The twelve month period that ends when a company's sales activities are at their lowest point.
Natural Business Years
International Accounting Standards Board
Ponzi Scheme
Accrued Expenses
19. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Contra Account
Money Market Account
Expanded Accounting Equation
Income Statement
20. Assets put into the business by the owner.
Post Closing Trial Balance
Book Value
Statement of Cash Flows
Owner Investment
21. Persons using accounting information who are directly involved in managing the organization.
Revenue Recognition Principle
Internal users
Common Stock
Portfolio Income
22. Expenses that remain the same regardless of the circumstances.
T Account
Fixed Expense
NASDAQ
Bailout
23. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Accrual Basis Accounting
Monetary Unit Assumption
Prepaid Expenses
Passive Income
24. Area of accounting aimed mainly at serving external users.
Debt Ratio
Stock
Financial Accounting
Profit Margin
25. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Risk
International Financial Reporting Standards
Corporations
SEC (Securites and Exchange Commision)
26. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Money Market Account
Cost-benefit Constraint
Statement of Cash Flows
Balance Column Account
27. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Chart of Accounts
Book Value
Expenses
Acquisition
28. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Balance Column Account
Closing Entries
Securities
Accrued Expenses
29. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Closing process
Monetary Unit Assumption
Corporation
Operating Cycle
30. Income that is available after all of the essential financial commitments have been paid.
Unearned Revenues
Unclassified Balance Sheets
Discretionary Income
Sole Proprietorship
31. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Net Income
Current Assets
Long Term Liabilities
Stockholders
32. Goals that are specific - measurable - attainable - realistic - and time bound.
Annual Financial Statements
IPO
SMART Goal
Compound Journal Entries
33. 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.
Profit Margin
Income Statement
Risk
Accrued Revenues
34. 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
Assets
Journalizing
Adjusting Entry
35. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Owner Withdrawals
Internal transactions
Bookkeeping
Time Period Assumptions
36. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
Corporation
Risk
Straight-line Depreciation Method
Plant Assets
37. Income from investments - including dividends - interest - or the sale of a property.
Debtors
Risk
Book Value
Portfolio Income
38. The combining of two or more comapnies into one larger company.
Fixed Expense
Current Ratio
Mergers
Internal transactions
39. 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.
Preferred Stock
Current Liabilities
Corporation
Expense Recognition Principle
40. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Fiscal Year
General Journal
Partnership Agreement
Debt Ratio
41. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Events
Unearned Revenues
Statement of Owner's Equity
Acquisition
42. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Debt Ratio
Operating Cycle
Matching Principle
Events
43. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Plant Assets
Ethical Dilemma
Debt Ratio
Posting
44. 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.
Risk Tolerance
Assets
NYSE (New York Stock Exchange)
Sole Proprietorship
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
Accrued Expenses
Equity
Natural Business Years
Expanded Accounting Equation
46. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
IPO
Long Term Liabilities
Profit Margin
Contra Account
47. Individuals hired to review financial reports and information systems of organizations.
Return on Assets
Business Entity Assumption
Common Stock
Auditors
48. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Chart of Accounts
Compound Journal Entries
Risk Tolerance
Natural Business Years
49. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Corporation
Owner Investment
Recordkeeping
Accounting
50. A corporation's basic ownership share.
Common Stock
Operating Cycle
Unsecured Loan
Sarbanes-Oxley Act (SOX)