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. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






2. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






3. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.






4. All purpose journal for recording the debits and credits of transactions and events.






5. 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.






6. Independent group of full-time members responsible for setting accounting rules.






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






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






9. Gross increase in equity from a company's business activities that earn income.






10. Area of accounting aimed mainly at serving external users.






11. An expense that changes from period to perio - such as food or gasoline costs.






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






13. Persons using accounting information who are directly involved in managing the organization.






14. Tool used to show the effects of transactions and events on individual accounts.






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






16. Individuals or organizations entitled to receive payments






17. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






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






19. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






20. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.






21. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.






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






23. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






24. The money left over when income exceeds expenditure.






25. The principle prescribing that revenue is recognized when earned.






26. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.






27. Journal entries that affect at least three accounts.






28. Statements that show the effect of proposed transactions and events as if they had occurred.






29. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






30. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






31. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






32. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






33. Goals that are specific - measurable - attainable - realistic - and time bound.






34. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






35. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






36. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






37. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






38. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






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






40. List of accounts and balances prepared before accounting adjustments are recorded and posted.






41. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






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






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






44. Individuals hired to review financial reports and information systems of organizations.






45. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






46. Normal time between paying cash for merchandise or employee services and receiving cash from customers.






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






48. Business owned by two or more people.






49. The value of a future cash steam discounted at the appropriate market interest rate.






50. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.