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. 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.
Accrual Basis Accounting
Journalizing
Measurement Principle
Accrued Revenues
2. Independent group of full-time members responsible for setting accounting rules.
Sole Proprietorship
Financial Accounting Standards Board
Unclassified Balance Sheets
Debit
3. Rules that specify acceptable accounting practices.
Credit
Generally Accepted Accounting Principles
Statement of Owner's Equity
Unearned Revenue
4. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an
Ledger
Risk
Accrued Expenses
Preferred Stock
5. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Long Term Liabilities
Time Period Assumptions
Operating Cycle
Internal users
6. Monies (or sums of money) received from an investment; often in percent form.
Liabilities
Return
Source Documents
Compound Journal Entries
7. Record containing all accounts (with amounts) for a business.
Risk
Deficit
Ledger
Double Entry Accounting
8. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Money Market Account
Straight-line Depreciation Method
Balance Column Account
Accounting Equation
9. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Temporary Accounts
Financial Accounting Standards Board
Interim Financial Statements
Closing process
10. The value of a future cash steam discounted at the appropriate market interest rate.
Accrual Basis Accounting
Revenue Recognition Principle
Acquisition
Present Value
11. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Net Income
Post Closing Trial Balance
Source Documents
Partnership
12. 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.
Going-concern Assumptions
Partnership
Return on Assets
International Financial Reporting Standards
13. Tool used to show the effects of transactions and events on individual accounts.
T Account
Recordkeeping
Net Loss
Creditors
14. 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
15. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
Secured Loan
Chart of Accounts
Expanded Accounting Equation
CD (Certificate of Deposit)
16. 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.
Accounting Cycle
Journal
Prepaid Expenses
Expense Recognition Principle
17. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Conceptual Framework
Liabilities
Accounting Cycle
Auditors
18. Principle that assumes transactions and events can be expressed in money units.
Journalizing
Income Summary
Monetary Unit Assumption
Sole Propietorship
19. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Account Balance
Common Stock
Money Market Account
Deficit
20. A legal entity that is seperate from its owners.
Corporations
Common Stock
Shares
Double Entry Accounting
21. Statements that show the effect of proposed transactions and events as if they had occurred.
Owner Investment
Pro Forma Financial Statement
Managerial Accounting
Expanded Accounting Equation
22. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Annual Financial Statements
Source Documents
Account
Accrued Revenues
23. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Bonds
Securities and Exchange Commission
Internal transactions
Current Ratio
24. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Permanent Accounts
Long Term Investments
Monetary Unit Assumption
Securities and Exchange Commission
25. 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.
Unsecured Loan
Equity
Posting Reference Column
Present Value
26. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Partnership
Revenues
General Journal
Temporary Accounts
27. Items paid for in advance of receiving their benefits. Classified as assets.
Contra Account
Classified Balance Sheet
NASDAQ
Prepaid Expenses
28. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Partnership
T Account
Depreciation
Expanded Accounting Equation
29. The money left over when income exceeds expenditure.
Surplus
Going-concern Assumptions
Matching Principle (or Expense Recognition Principle)
Accounting Equation
30. 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.
Credit
Unsecured Loan
Owner - Capital
Matching Principle
31. 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
Full Disclosure Principle
Surplus
NASDAQ
Ethics
32. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Securities and Exchange Commission
Recordkeeping
Long Term Investments
Unadjusted Trial Balance
33. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Net Loss
Stock
Trial balance
Recordkeeping
34. A written framework to guide the development - preparation - and interpretation of financial accounting information.
IRA (Individual Retirement Account)
Limited Liability Corporation
Conceptual Framework
Auditors
35. Assets pulled out of the business by the owner.
Creditors
Bonds
Partnership
Owner Withdrawals
36. 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.
Income Statement
Common Stock
Portfolio Income
External Transactions
37. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Assets
Unclassified Balance Sheets
Securities and Exchange Commission
Unearned Revenues
38. Exchanges of economic value between one entity and another entity.
Work Sheet
Unsecured Loan
IPO
External Transactions
39. Journal entries that affect at least three accounts.
Accounting Cycle
Annual Financial Statements
Cost-benefit Constraint
Compound Journal Entries
40. 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).
Materiality Constraint
Closing Entries
Risk
Accrued Expenses
41. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Annual Financial Statements
Current Ratio
Compound Journal Entries
Full Disclosure Principle
42. Persons using accounting information who are not directly involved in running the organization.
External Users
Prepaid Expenses
Ledger
Debit
43. The principle prescribing that revenue is recognized when earned.
Revenue Recognition Principle
Net Income
Generally Accepted Accounting Principles
Sole Proprietorship
44. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Balance Sheet
SMART Goal
Temporary Accounts
Double Entry Accounting
45. A tax deferred account that allows individuals to plan for their retirement.
Ponzi Scheme
IRA (Individual Retirement Account)
Accrual Basis Accounting
Current Ratio
46. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Ethical Dilemma
Unsecured Loan
Natural Business Years
Debt Ratio
47. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Cash Basis Accounting
Return on Assets
Credit
Current Liabilities
48. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Double Entry Accounting
Unadjusted Trial Balance
Unsecured Loan
Accrued Expenses
49. Outflows or using up of assets as part of operations of business to generate sales.
Financial Accounting
Expenses
Time Period Assumptions
Income Statement
50. Persons using accounting information who are directly involved in managing the organization.
Partnership Agreement
Internal users
Corporations
Ponzi Scheme