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. The value of a future cash steam discounted at the appropriate market interest rate.
Present Value
Unearned Revenue
International Financial Reporting Standards
Assets
2. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Cash Basis Accounting
Current Assets
Portfolio Income
Credit
3. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Pro Forma Financial Statement
Cash Basis Accounting
Chart of Accounts
Securities
4. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
International Financial Reporting Standards
Interim Financial Statements
Debt Ratio
Unadjusted Trial Balance
5. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Adjusted Trial Balance
Conceptual Framework
Permanent Accounts
SEC (Securites and Exchange Commision)
6. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Closing process
Generally Accepted Accounting Principles
Shares
Cost-benefit Constraint
7. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Cost-benefit Constraint
Annual Financial Statements
Prepaid Expenses
Passive Income
8. Accounting information is based on cost with potential subsequent adjustments to fair value.
Discretionary Income
Preferred Stock
Time Period Assumptions
Measurement Principle
9. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Plant Assets
Owner Investment
Expanded Accounting Equation
Managerial Accounting
10. 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.
IPO
Federal Reserve System
Business Entity Assumption
General Journal
11. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Measurement Principle
NASDAQ
Debit
Source Documents
12. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Plant Assets
Fiscal Year
Matching Principle
Managerial Accounting
13. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Contra Account
Annual Financial Statements
Monetary Unit Assumption
Securities
14. An expense that changes from period to perio - such as food or gasoline costs.
Operating Cycle
Varaiable Expense
CD (Certificate of Deposit)
Bonds
15. 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.
Unclassified Balance Sheets
Liabilities
Bonds
Measurement Principle
16. 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.
Revenue Recognition Principle
Reversing Entries
T Account
Ethics
17. Statements that show the effect of proposed transactions and events as if they had occurred.
Pro Forma Financial Statement
Passive Income
Posting Reference Column
Expanded Accounting Equation
18. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Double Entry Accounting
Unearned Revenues
Annual Financial Statements
Post Closing Trial Balance
19. Uncertainty about expected return.
Ponzi Scheme
Owner Investment
Stockholders
Risk
20. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Bailout
Closing process
Expenses
Reversing Entries
21. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Post Closing Trial Balance
Money Market Account
Book Value
Assets
22. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Bookkeeping
Stock
Debt Ratio
Profit Margin
23. A corporation's basic ownership share.
Surplus
Common Stock
Debtors
External Users
24. Principle that assumes transactions and events can be expressed in money units.
Work Sheet
External Users
Monetary Unit Assumption
Internal users
25. 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.
Federal Reserve System
International Accounting Standards Board
International Financial Reporting Standards
Statement of Owner's Equity
26. 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.
Securities
Temporary Accounts
Fiscal Year
Adjusting Entry
27. 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.
Owner Investment
IPO
Accrued Revenues
Sarbanes-Oxley Act (SOX)
28. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.
SEC (Securites and Exchange Commision)
Business Entity Assumption
Owner - Capital
Unsecured Loan
29. List of accounts and balances prepared before accounting adjustments are recorded and posted.
External Users
General Journal
Unadjusted Trial Balance
Securities
30. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Account
Events
Accrued Expenses
Time Period Assumptions
31. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Net Income
Matching Principle (or Expense Recognition Principle)
Contra Account
Compound Journal Entries
32. The money left over when income exceeds expenditure.
Surplus
Reversing Entries
Accounting
Account Balance
33. Business owned by two or more people.
Current Liabilities
Partnership
Unearned Revenues
Assets
34. Owners of a corporation who usually receive dividends. Also called shareholders.
Stockholders
Shares
Accrual Basis Accounting
Liabilities
35. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Long Term Investments
Temporary Accounts
Risk Tolerance
NASDAQ
36. 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.
Accrued Expenses
Owner Withdrawals
Passive Income
Equity
37. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Events
Limited Liability Corporation
Fixed Expense
Business Entity Assumption
38. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Intangible assets
Long Term Liabilities
Unclassified Balance Sheets
Preferred Stock
39. Area of accounting aimed mainly at serving external users.
Reversing Entries
Financial Accounting
Adjusted Trial Balance
Temporary Accounts
40. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Recordkeeping
Natural Business Years
Internal transactions
Reversing Entries
41. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Deficit
Long Term Investments
Owner - Capital
Money Market Account
42. 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
Expense Recognition Principle
Post Closing Trial Balance
External Transactions
43. Income that is available after all of the essential financial commitments have been paid.
Risk
Intangible assets
Classified Balance Sheet
Discretionary Income
44. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Cost Principle
Balance Column Account
Corporations
International Financial Reporting Standards
45. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
IRA (Individual Retirement Account)
Accounting Equation
Income Summary
Acquisition
46. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Return
Long Term Investments
Sarbanes-Oxley Act (SOX)
Account
47. Persons using accounting information who are not directly involved in running the organization.
Risk
Conceptual Framework
External Users
Securities and Exchange Commission
48. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.
Double Entry Accounting
Credit
Unearned Revenue
Bonds
49. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Prepaid Expenses
Reversing Entries
Income Summary
Plant Assets
50. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Annual Financial Statements
International Accounting Standards Board
Shares
Ethics