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






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






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






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






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






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






7. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






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






9. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






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






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






12. A tax deferred account that allows individuals to plan for their retirement.






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






14. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






15. 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.






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






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






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






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






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






21. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






22. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






23. 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.






24. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






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






26. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.






27. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






28. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






29. 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.






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






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






32. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






33. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






34. A corporation's basic ownership share.






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






36. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






37. Process of transferring journal entry information to the ledger; computerized systems automate this process.






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






39. Excess of expenses over revenues for a period.






40. Loaning or giving money to a business in orer to save it from bankruptcy.






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






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






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






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






45. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






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






47. Uncertainty about expected return.






48. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






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






50. Business owned by a single person.







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