Test your basic knowledge |

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. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






2. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






3. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






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






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






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






7. 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






8. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






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






10. Accounting information is based on cost with potential subsequent adjustments to fair value.






11. Expenses that remain the same regardless of the circumstances.






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






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






14. 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).






15. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






16. Balance sheet that broadly groups assets - liabilities - and equity accounts.






17. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






18. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






19. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






20. 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.






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






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






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






24. Items paid for in advance of receiving their benefits. Classified as assets.






25. Length of time covered by financial statements; also called reporting period.






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






27. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






28. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of






29. 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.






30. Process of recording transactions in a journal.






31. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






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






33. Uncertainty about expected return.






34. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






35. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






36. Tool used to show the effects of transactions and events on individual accounts.






37. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.






38. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






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






40. A written framework to guide the development - preparation - and interpretation of financial accounting information.






41. A corporation's basic ownership share.






42. Principle that assumes transactions and events can be expressed in money units.






43. 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.






44. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






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






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






47. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






48. 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.






49. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.






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