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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. 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
Plant Assets
International Accounting Standards Board
NASDAQ
Limited Liability Corporation
2. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
International Accounting Standards Board
Adjusting Entry
Operating Cycle
Time Period Assumptions
3. Report of changes in equity over a period; adjusted for increases and for decreases.
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4. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Securities
Classified Balance Sheet
Statement of Cash Flows
Materiality Constraint
5. All purpose journal for recording the debits and credits of transactions and events.
Journal
General Journal
Surplus
Portfolio Income
6. Area of accounting aimed mainly at serving external users.
Posting Reference Column
Financial Accounting
Present Value
Sarbanes-Oxley Act (SOX)
7. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Adjusted Trial Balance
Money Market Account
Working Papers
Reversing Entries
8. A loan that is backed by collateral such as cars - houses - or other assets.
Secured Loan
Long Term Liabilities
Ethics
Unearned Revenues
9. Record containing all accounts (with amounts) for a business.
Long Term Investments
Measurement Principle
Prepaid Expenses
Ledger
10. A corporation's basic ownership share.
Double Entry Accounting
Common Stock
Net Income
Full Disclosure Principle
11. 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.
Double Entry Accounting
Natural Business Years
Income Statement
External Users
12. 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.
Passive Income
Ethics
Adjusting Entry
Statement of Cash Flows
13. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Common Stock
Financial Accounting
Risk
Shares
14. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Accrual Basis Accounting
Securities
Temporary Accounts
Account
15. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Balance Sheet
Internal transactions
Expanded Accounting Equation
Accrued Expenses
16. Activities within an organization that can affect the accounting equation.
Partnership
Ethical Dilemma
Internal transactions
Debit
17. Business owned by a single person.
IPO
Sole Propietorship
Journalizing
Full Disclosure Principle
18. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Risk
Risk Tolerance
Credit
Unsecured Loan
19. The principle prescribing that revenue is recognized when earned.
Acquisition
Reversing Entries
Revenue Recognition Principle
Business Entity Assumption
20. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Trial balance
Posting
Mergers
Auditors
21. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Working Papers
Current Liabilities
Adjusted Trial Balance
Prepaid Expenses
22. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Return on Assets
Managerial Accounting
Natural Business Years
Fixed Expense
23. Goals that are specific - measurable - attainable - realistic - and time bound.
SMART Goal
Managerial Accounting
Current Liabilities
International Accounting Standards Board
24. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
NYSE (New York Stock Exchange)
Net Income
Securities and Exchange Commission
Equity
25. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Portfolio Income
Deficit
International Accounting Standards Board
Limited Liability Corporation
26. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Closing Entries
Interim Financial Statements
Expenses
Return on Assets
27. Individuals hired to review financial reports and information systems of organizations.
Work Sheet
Cash Basis Accounting
Matching Principle (or Expense Recognition Principle)
Auditors
28. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Ledger
Posting
Monetary Unit Assumption
Long Term Investments
29. Items paid for in advance of receiving their benefits. Classified as assets.
Cost Principle
Time Period Assumptions
Partnership
Prepaid Expenses
30. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Auditors
Long Term Liabilities
Debit
Intangible assets
31. Gross increase in equity from a company's business activities that earn income.
Accounting
Adjusted Trial Balance
Revenues
Corporations
32. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Depreciation
Statement of Owner's Equity
Unearned Revenues
Debit
33. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Double Entry Accounting
Securities
Partnership
Current Liabilities
34. 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.
Expense Recognition Principle
Sole Propietorship
Owner - Capital
Accrued Expenses
35. Monies (or sums of money) received from an investment; often in percent form.
Unearned Revenue
Preferred Stock
Return
Work Sheet
36. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Shares
Materiality Constraint
General Journal
Risk Tolerance
37. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Current Liabilities
Debtors
Passive Income
Contra Account
38. Persons using accounting information who are not directly involved in running the organization.
Unclassified Balance Sheets
External Users
Double Entry Accounting
Generally Accepted Accounting Principles
39. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Assets
Unearned Revenue
Stock
Securities and Exchange Commission
40. 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.
Long Term Liabilities
Financial Accounting
SMART Goal
Ponzi Scheme
41. 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
Recordkeeping
Source Documents
External Transactions
Preferred Stock
42. Assets put into the business by the owner.
Net Loss
Owner Investment
Current Assets
Accounting Cycle
43. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Fiscal Year
Passive Income
Matching Principle (or Expense Recognition Principle)
Statement of Cash Flows
44. Persons using accounting information who are directly involved in managing the organization.
Current Assets
Acquisition
Sole Propietorship
Internal users
45. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Fixed Expense
Pro Forma Financial Statement
Balance Sheet
Ledger
46. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Sole Proprietorship
Accounting Cycle
Revenue Recognition Principle
General Journal
47. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Discretionary Income
Recordkeeping
Accounting Equation
Double Entry Accounting
48. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Permanent Accounts
Preferred Stock
Accounting Cycle
Conceptual Framework
49. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.
Journalizing
Unclassified Balance Sheets
NYSE (New York Stock Exchange)
Matching Principle (or Expense Recognition Principle)
50. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Owner - Capital
Risk Tolerance
Cost Principle
Matching Principle (or Expense Recognition Principle)