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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. 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.






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






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






4. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.






5. Uncertainty about expected return.






6. Expenses that remain the same regardless of the circumstances.






7. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






8. Owners of a corporation who usually receive dividends. Also called shareholders.






9. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






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






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






13. Business owned by one person that is not organized as a corporation.






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






15. List of accounts used by a company' includes and identification number for each account.






16. Assets pulled out of the business by the owner.






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






18. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






19. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






20. Journal entries that affect at least three accounts.






21. A loan that is backed by collateral such as cars - houses - or other assets.






22. Report of changes in equity over a period; adjusted for increases and for decreases.

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






24. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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






26. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






27. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






28. Business owned by two or more people.






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






30. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






31. 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






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






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






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






35. 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.






36. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






37. The combining of two or more comapnies into one larger company.






38. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






39. Individuals or organizations entitled to receive payments






40. Difference between total debits and total credits (including the beginning balance) for an account.






41. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






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






43. A corporation's basic ownership share.






44. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






45. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






46. Rules that specify acceptable accounting practices.






47. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






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






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






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