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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. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Accounting Equation
Auditors
NYSE (New York Stock Exchange)
Revenues
2. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Financial Accounting Standards Board
Income Summary
Acquisition
Balance Column Account
3. A corporation's basic ownership share.
IPO
Common Stock
Sole Propietorship
Long Term Investments
4. Individuals or organizations entitled to receive payments
Stock
Secured Loan
Posting Reference Column
Creditors
5. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Compound Journal Entries
Balance Sheet
Journal
Credit
6. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
IRA (Individual Retirement Account)
Post Closing Trial Balance
Risk Tolerance
Adjusting Entry
7. Owners of a corporation who usually receive dividends. Also called stockholders.
Current Assets
Time Period Assumptions
Account Balance
Shareholders
8. Journal entries that affect at least three accounts.
Journalizing
Corporations
Cost Principle
Compound Journal Entries
9. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Portfolio Income
Source Documents
Secured Loan
Shares
10. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Annual Financial Statements
Business Entity Assumption
Accrual Basis Accounting
Shares
11. List of accounts used by a company' includes and identification number for each account.
Materiality Constraint
Debt Ratio
Accounting Equation
Chart of Accounts
12. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Plant Assets
Annual Financial Statements
Contra Account
Equity
13. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Surplus
Debit
Going-concern Assumptions
Operating Cycle
14. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Long Term Investments
Present Value
Measurement Principle
Debt Ratio
15. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Shares
Classified Balance Sheet
Natural Business Years
Unclassified Balance Sheets
16. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Bookkeeping
Ethical Dilemma
Prepaid Expenses
Source Documents
17. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Double Entry Accounting
Secured Loan
Financial Accounting
Securities
18. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Partnership
Expanded Accounting Equation
Accounting Cycle
Surplus
19. The twelve month period that ends when a company's sales activities are at their lowest point.
Natural Business Years
Owner - Capital
Expanded Accounting Equation
NYSE (New York Stock Exchange)
20. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Assets
Managerial Accounting
Ponzi Scheme
Corporation
21. Excess of expenses over revenues for a period.
Contra Account
Adjusting Entry
Mergers
Net Loss
22. Happenings that both affect an organization's financial position and can be reliably measured.
Events
Auditors
Ethics
Bailout
23. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Acquisition
Managerial Accounting
Posting Reference Column
Sole Propietorship
24. 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
NASDAQ
Corporation
Managerial Accounting
Surplus
25. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted
Discretionary Income
Expanded Accounting Equation
Debt Ratio
Bailout
26. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
External Transactions
Unclassified Balance Sheets
T Account
Statement of Cash Flows
27. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Post Closing Trial Balance
Closing process
Internal users
Common Stock
28. 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).
Long Term Investments
Closing Entries
Shareholders
Passive Income
29. Assets put into the business by the owner.
Source Documents
Stockholders
Credit
Owner Investment
30. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Unsecured Loan
Reversing Entries
Temporary Accounts
Common Stock
31. Income that is available after all of the essential financial commitments have been paid.
Shareholders
Bonds
Sole Proprietorship
Discretionary Income
32. Expenses that remain the same regardless of the circumstances.
Federal Reserve System
Book Value
Fixed Expense
Closing Entries
33. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Generally Accepted Accounting Principles
Book Value
Income Statement
Going-concern Assumptions
34. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Auditors
Shares
Stockholders
Debit
35. Individuals or organizations that owe money.
Owner - Capital
Credit
Debtors
Accounting Equation
36. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Current Assets
Generally Accepted Accounting Principles
Deficit
Time Period Assumptions
37. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Net Income
Mergers
Cost-benefit Constraint
Profit Margin
38. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Book Value
Generally Accepted Accounting Principles
Liabilities
Classified Balance Sheet
39. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Full Disclosure Principle
Materiality Constraint
Ledger
Deficit
40. Rules that specify acceptable accounting practices.
Plant Assets
Account
Credit
Generally Accepted Accounting Principles
41. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Materiality Constraint
Debt Ratio
Return on Assets
Money Market Account
42. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Limited Liability Corporation
NASDAQ
Sole Propietorship
Account
43. Outflows or using up of assets as part of operations of business to generate sales.
Accounting Equation
Long Term Liabilities
Expenses
Accrued Revenues
44. Individuals hired to review financial reports and information systems of organizations.
Time Period Assumptions
NYSE (New York Stock Exchange)
Auditors
Deficit
45. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Work Sheet
IRA (Individual Retirement Account)
Statement of Cash Flows
Unearned Revenue
46. Exchanges of economic value between one entity and another entity.
External Transactions
Sole Proprietorship
Revenues
Passive Income
47. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Annual Financial Statements
Adjusted Trial Balance
Depreciation
Going-concern Assumptions
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
Managerial Accounting
Business Entity Assumption
Closing Entries
49. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Balance Column Account
Accounting Cycle
Intangible assets
Posting
50. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Depreciation
Accrued Expenses
Posting
Accounting