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. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Chart of Accounts
Internal users
Post Closing Trial Balance
Assets
2. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Annual Financial Statements
Current Liabilities
Intangible assets
Accounting Period
3. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Cash Basis Accounting
Sole Propietorship
Return
Business Entity Assumption
4. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Partnership
Accrual Basis Accounting
IRA (Individual Retirement Account)
Money Market Account
5. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Federal Reserve System
Portfolio Income
Balance Column Account
Contra Account
6. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Present Value
Statement of Owner's Equity
Depreciation
Passive Income
7. 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
Limited Liability Corporation
NASDAQ
Securities
Return on Assets
8. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Accounting
Cost Principle
Sole Propietorship
Preferred Stock
9. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Matching Principle
Surplus
Credit
Shares
10. Accounting information is based on cost with potential subsequent adjustments to fair value.
Interim Financial Statements
Net Loss
Measurement Principle
IRA (Individual Retirement Account)
11. Expenses that remain the same regardless of the circumstances.
Acquisition
Shares
Ethical Dilemma
Fixed Expense
12. Difference between total debits and total credits (including the beginning balance) for an account.
Current Liabilities
Account Balance
Current Assets
Cash Basis Accounting
13. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Unearned Revenue
Ledger
Permanent Accounts
Events
14. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).
Varaiable Expense
Income Summary
Net Income
Accounting
15. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Matching Principle (or Expense Recognition Principle)
T Account
Profit Margin
Surplus
16. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Annual Financial Statements
Statement of Owner's Equity
Securities
Unclassified Balance Sheets
17. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Journal
Long Term Liabilities
External Users
SEC (Securites and Exchange Commision)
18. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
Debtors
Net Income
Unearned Revenues
Present Value
19. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Classified Balance Sheet
Cost-benefit Constraint
Balance Sheet
Current Assets
20. 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.
Bonds
Ponzi Scheme
Adjusted Trial Balance
Federal Reserve System
21. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
CD (Certificate of Deposit)
Accounting Period
Stock
Accounting Cycle
22. An expense that changes from period to perio - such as food or gasoline costs.
Accrued Revenues
NASDAQ
Varaiable Expense
SEC (Securites and Exchange Commision)
23. A tax deferred account that allows individuals to plan for their retirement.
IRA (Individual Retirement Account)
Profit Margin
Secured Loan
Income Summary
24. Items paid for in advance of receiving their benefits. Classified as assets.
Cost-benefit Constraint
Prepaid Expenses
Debtors
Income Summary
25. Length of time covered by financial statements; also called reporting period.
Equity
Money Market Account
Accounting Period
Expense Recognition Principle
26. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Cost-benefit Constraint
Posting
Full Disclosure Principle
External Users
27. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Chart of Accounts
Unsecured Loan
Acquisition
Post Closing Trial Balance
28. 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
Financial Accounting
Sarbanes-Oxley Act (SOX)
Conceptual Framework
Managerial Accounting
29. 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.
Natural Business Years
NYSE (New York Stock Exchange)
Balance Column Account
Bailout
30. Process of recording transactions in a journal.
Monetary Unit Assumption
Balance Column Account
Journalizing
Stockholders
31. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
SEC (Securites and Exchange Commision)
Account
Liabilities
Ledger
32. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Corporations
Operating Cycle
Balance Column Account
Recordkeeping
33. Uncertainty about expected return.
Risk
Owner - Capital
Bonds
Profit Margin
34. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Full Disclosure Principle
Expanded Accounting Equation
Corporations
Securities and Exchange Commission
35. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Ledger
Owner - Capital
Going-concern Assumptions
Partnership Agreement
36. Tool used to show the effects of transactions and events on individual accounts.
Shareholders
IPO
T Account
Measurement Principle
37. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Matching Principle (or Expense Recognition Principle)
Time Period Assumptions
Partnership Agreement
Double Entry Accounting
38. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Annual Financial Statements
Liabilities
Intangible assets
Audit
39. Persons using accounting information who are not directly involved in running the organization.
External Transactions
External Users
Post Closing Trial Balance
Debtors
40. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Limited Liability Corporation
Partnership Agreement
Creditors
Conceptual Framework
41. A corporation's basic ownership share.
Common Stock
SMART Goal
Account Balance
General Journal
42. Principle that assumes transactions and events can be expressed in money units.
Monetary Unit Assumption
Full Disclosure Principle
Sole Proprietorship
Audit
43. 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.
Matching Principle (or Expense Recognition Principle)
International Financial Reporting Standards
Statement of Owner's Equity
SEC (Securites and Exchange Commision)
44. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Bailout
Double Entry Accounting
Conceptual Framework
Accrued Expenses
45. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Bookkeeping
Events
Time Period Assumptions
Operating Cycle
46. Monies (or sums of money) received from an investment; often in percent form.
Owner Investment
Return
Audit
Sarbanes-Oxley Act (SOX)
47. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Full Disclosure Principle
Journalizing
Cash Basis Accounting
Annual Financial Statements
48. 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.
Expense Recognition Principle
Secured Loan
Journal
External Transactions
49. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Risk Tolerance
Classified Balance Sheet
Common Stock
Double Entry Accounting
50. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Adjusted Trial Balance
Classified Balance Sheet
Accrual Basis Accounting
Permanent Accounts