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Test your basic knowledge |
DSST Principles Of Finance
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Subjects
:
dsst
,
business-skills
Instructions:
Answer 50 questions in 15 minutes.
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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. Uncertainty about expected return.
Risk
Materiality Constraint
Owner Investment
Cash Basis Accounting
2. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Accounting Equation
Working Papers
Conceptual Framework
Net Loss
3. Individuals or organizations that owe money.
Generally Accepted Accounting Principles
Debtors
Conceptual Framework
Posting Reference Column
4. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
NASDAQ
Monetary Unit Assumption
Money Market Account
Accrued Expenses
5. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Stock
Prepaid Expenses
Ledger
Corporation
6. Individuals or organizations entitled to receive payments
Prepaid Expenses
Annual Financial Statements
Posting
Creditors
7. Owners of a corporation who usually receive dividends. Also called stockholders.
Shareholders
Plant Assets
Revenues
NASDAQ
8. 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.
Common Stock
External Users
Stock
Time Period Assumptions
9. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Post Closing Trial Balance
Straight-line Depreciation Method
Common Stock
Depreciation
10. Record containing all accounts (with amounts) for a business.
Source Documents
Journalizing
Accounting
Ledger
11. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Return on Assets
Interim Financial Statements
Owner Withdrawals
Events
12. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Plant Assets
Balance Column Account
Unsecured Loan
Business Entity Assumption
13. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Accrual Basis Accounting
Account Balance
Partnership Agreement
Partnership
14. Owners of a corporation who usually receive dividends. Also called shareholders.
Bookkeeping
Time Period Assumptions
Shareholders
Stockholders
15. Business owned by one person that is not organized as a corporation.
IRA (Individual Retirement Account)
Equity
Preferred Stock
Sole Proprietorship
16. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Auditors
Bookkeeping
Classified Balance Sheet
Shareholders
17. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Debtors
Bookkeeping
Expense Recognition Principle
Time Period Assumptions
18. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Full Disclosure Principle
Audit
Common Stock
Accrued Revenues
19. Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.
Trial balance
Reversing Entries
Long Term Liabilities
Going-concern Assumptions
20. Excess of expenses over revenues for a period.
NASDAQ
Partnership
Net Loss
Income Summary
21. Individuals hired to review financial reports and information systems of organizations.
Risk
SMART Goal
Auditors
Cash Basis Accounting
22. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Interim Financial Statements
Passive Income
Posting Reference Column
Prepaid Expenses
23. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Temporary Accounts
Securities and Exchange Commission
Long Term Liabilities
Unadjusted Trial Balance
24. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Journal
General Journal
Statement of Cash Flows
Unclassified Balance Sheets
25. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
International Accounting Standards Board
Discretionary Income
Federal Reserve System
Unearned Revenue
26. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Bonds
Unearned Revenues
Expanded Accounting Equation
SMART Goal
27. List of accounts used by a company' includes and identification number for each account.
Passive Income
Ledger
Chart of Accounts
Permanent Accounts
28. Outflows or using up of assets as part of operations of business to generate sales.
Intangible assets
Sole Proprietorship
Expenses
Balance Sheet
29. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Accounting Cycle
Matching Principle
Long Term Investments
Materiality Constraint
30. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
Posting Reference Column
Net Income
Owner - Capital
Accrual Basis Accounting
31. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Conceptual Framework
Bonds
Acquisition
Materiality Constraint
32. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Unadjusted Trial Balance
Conceptual Framework
Long Term Liabilities
Bonds
33. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Account
Adjusting Entry
Managerial Accounting
Financial Accounting
34. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.
Sarbanes-Oxley Act (SOX)
Accounting Period
Matching Principle
Owner - Capital
35. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Limited Liability Corporation
Money Market Account
Bookkeeping
Closing process
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).
Ethics
Cost Principle
Income Summary
Statement of Owner's Equity
37. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.
Working Papers
Unearned Revenues
Bonds
SEC (Securites and Exchange Commision)
38. Income that is available after all of the essential financial commitments have been paid.
Book Value
Discretionary Income
Closing process
Expenses
39. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Current Assets
Book Value
Measurement Principle
Creditors
40. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Trial balance
Source Documents
Generally Accepted Accounting Principles
Matching Principle
41. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Matching Principle
Bailout
Risk Tolerance
Generally Accepted Accounting Principles
42. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Current Ratio
Interim Financial Statements
Posting
Double Entry Accounting
43. Persons using accounting information who are directly involved in managing the organization.
Accounting Cycle
Internal users
Plant Assets
Unearned Revenues
44. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Current Liabilities
Accounting
Intangible assets
Statement of Cash Flows
45. Report of changes in equity over a period; adjusted for increases and for decreases.
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46. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Fixed Expense
Statement of Owner's Equity
Posting Reference Column
Ethics
47. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Prepaid Expenses
Mergers
Operating Cycle
Unclassified Balance Sheets
48. The money left over when income exceeds expenditure.
Surplus
Securities and Exchange Commission
Current Ratio
Ponzi Scheme
49. Assets put into the business by the owner.
Sarbanes-Oxley Act (SOX)
Materiality Constraint
Bookkeeping
Owner Investment
50. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Long Term Liabilities
Credit
Closing Entries
Internal transactions
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