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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. Goals that are specific - measurable - attainable - realistic - and time bound.
SMART Goal
Deficit
Closing Entries
Accounting Period
2. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Accrued Revenues
Plant Assets
Book Value
Natural Business Years
3. 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.
Balance Sheet
Full Disclosure Principle
Sole Proprietorship
Accrued Revenues
4. Happenings that both affect an organization's financial position and can be reliably measured.
Statement of Cash Flows
Trial balance
Net Loss
Events
5. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Money Market Account
Expense Recognition Principle
Business Entity Assumption
Account Balance
6. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
SMART Goal
Corporation
Post Closing Trial Balance
Mergers
7. Persons using accounting information who are directly involved in managing the organization.
Time Period Assumptions
Posting
Financial Accounting Standards Board
Internal users
8. 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.
Closing Entries
Unsecured Loan
Federal Reserve System
Shares
9. A loan that is not backed by collateral - but by the promise of the borrower to repay it.
Unsecured Loan
Expanded Accounting Equation
Secured Loan
Post Closing Trial Balance
10. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Owner Investment
Managerial Accounting
Temporary Accounts
Debt Ratio
11. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Contra Account
Financial Accounting
Cash Basis Accounting
Post Closing Trial Balance
12. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Straight-line Depreciation Method
Debt Ratio
Going-concern Assumptions
IRA (Individual Retirement Account)
13. Independent group of full-time members responsible for setting accounting rules.
General Journal
Intangible assets
Financial Accounting Standards Board
Mergers
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).
Risk Tolerance
International Accounting Standards Board
Income Summary
Depreciation
15. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Matching Principle
Cost-benefit Constraint
Permanent Accounts
Ethical Dilemma
16. Area of accounting aimed mainly at serving external users.
Deficit
Profit Margin
Financial Accounting
Revenue Recognition Principle
17. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.
Current Ratio
Creditors
Mergers
Unadjusted Trial Balance
18. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Bailout
Recordkeeping
Liabilities
Work Sheet
19. 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.
Sole Propietorship
Adjusting Entry
Ponzi Scheme
Long Term Liabilities
20. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Federal Reserve System
Accrued Revenues
Profit Margin
Current Liabilities
21. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
SMART Goal
Securities
Owner Withdrawals
Full Disclosure Principle
22. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Revenues
Intangible assets
Credit
Matching Principle (or Expense Recognition Principle)
23. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Securities
IRA (Individual Retirement Account)
Accrued Revenues
Deficit
24. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Posting
Passive Income
Corporations
Unearned Revenue
25. 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).
Conceptual Framework
NYSE (New York Stock Exchange)
Risk Tolerance
Closing Entries
26. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Profit Margin
Mergers
Accounting
Annual Financial Statements
27. Income from investments - including dividends - interest - or the sale of a property.
Surplus
Portfolio Income
Adjusted Trial Balance
Annual Financial Statements
28. List of accounts used by a company' includes and identification number for each account.
Fiscal Year
Chart of Accounts
Posting Reference Column
Long Term Liabilities
29. Income that is available after all of the essential financial commitments have been paid.
Discretionary Income
Expenses
Pro Forma Financial Statement
Conceptual Framework
30. 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
Return
International Financial Reporting Standards
Materiality Constraint
31. Tool used to show the effects of transactions and events on individual accounts.
Accounting Equation
Accrued Revenues
T Account
Debt Ratio
32. The first time a company sells shares of its stock to the public.
Risk Tolerance
Closing Entries
IPO
Shareholders
33. 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.
Stock
Equity
Chart of Accounts
Partnership
34. Record containing all accounts (with amounts) for a business.
Ledger
Common Stock
Closing process
Owner - Capital
35. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Closing Entries
Passive Income
Risk Tolerance
Accrued Expenses
36. Assets put into the business by the owner.
Owner Investment
Unadjusted Trial Balance
Plant Assets
Permanent Accounts
37. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Work Sheet
Intangible assets
External Transactions
Discretionary Income
38. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Conceptual Framework
Events
Current Ratio
Bookkeeping
39. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Long Term Liabilities
International Accounting Standards Board
Materiality Constraint
Accounting
40. The value of a future cash steam discounted at the appropriate market interest rate.
SMART Goal
Securities
Present Value
Conceptual Framework
41. Owners of a corporation who usually receive dividends. Also called stockholders.
Shareholders
Working Papers
Operating Cycle
Owner Withdrawals
42. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Accrued Expenses
Managerial Accounting
Posting Reference Column
Prepaid Expenses
43. Owners of a corporation who usually receive dividends. Also called shareholders.
Unearned Revenues
Surplus
Stockholders
Accounting
44. 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
Audit
Balance Sheet
Working Papers
Preferred Stock
45. Accounting information is based on cost with potential subsequent adjustments to fair value.
Measurement Principle
Accounting Cycle
Unsecured Loan
Working Papers
46. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
International Accounting Standards Board
Surplus
Return on Assets
Working Papers
47. 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.
Net Income
International Financial Reporting Standards
Operating Cycle
Accounting Cycle
48. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Common Stock
Journal
Surplus
Limited Liability Corporation
49. The principle prescribing that revenue is recognized when earned.
Monetary Unit Assumption
Revenue Recognition Principle
Sarbanes-Oxley Act (SOX)
Account
50. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Debtors
Working Papers
Stockholders
Chart of Accounts