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






2. 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






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






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






5. Uncertainty about expected return.






6. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






8. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






9. 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).






10. 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.






11. 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.






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






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






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






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






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






17. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






18. Monies (or sums of money) received from an investment; often in percent form.






19. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






20. 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.






21. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






22. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






24. A legal entity that is seperate from its owners.






25. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.






26. Persons using accounting information who are not directly involved in running the organization.






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






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






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






30. Rules that specify acceptable accounting practices.






31. 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.






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






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






34. Items paid for in advance of receiving their benefits. Classified as assets.






35. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.






36. Income from investments - including dividends - interest - or the sale of a property.






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






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






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






40. Assets put into the business by the owner.






41. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


43. Journal entries that affect at least three accounts.






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






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






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






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






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






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






50. Income that is available after all of the essential financial commitments have been paid.