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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. Uncertainty about expected return.
Unsecured Loan
Risk
Sarbanes-Oxley Act (SOX)
Trial balance
2. 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
Temporary Accounts
Work Sheet
Surplus
Sarbanes-Oxley Act (SOX)
3. 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.
Reversing Entries
Cash Basis Accounting
Chart of Accounts
Post Closing Trial Balance
4. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Source Documents
Intangible assets
Deficit
Closing Entries
5. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Common Stock
Posting
Permanent Accounts
Monetary Unit Assumption
6. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
External Transactions
International Accounting Standards Board
Compound Journal Entries
Accrued Expenses
7. Items paid for in advance of receiving their benefits. Classified as assets.
Return
Prepaid Expenses
Depreciation
Liabilities
8. Excess of expenses over revenues for a period.
Acquisition
Net Loss
Accrued Expenses
Revenues
9. List of accounts used by a company' includes and identification number for each account.
Permanent Accounts
Classified Balance Sheet
Sole Propietorship
Chart of Accounts
10. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
Return
Net Income
Pro Forma Financial Statement
Owner - Capital
11. 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
Generally Accepted Accounting Principles
Work Sheet
Preferred Stock
T Account
12. Assets pulled out of the business by the owner.
Deficit
Shares
Return
Owner Withdrawals
13. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Managerial Accounting
Pro Forma Financial Statement
Post Closing Trial Balance
Revenue Recognition Principle
14. 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.
Unearned Revenues
Owner - Capital
Audit
Permanent Accounts
15. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Acquisition
Time Period Assumptions
Current Assets
Double Entry Accounting
16. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Interim Financial Statements
Generally Accepted Accounting Principles
Time Period Assumptions
Owner Investment
17. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Working Papers
General Journal
Adjusted Trial Balance
Owner - Capital
18. The money left over when income exceeds expenditure.
Adjusted Trial Balance
Surplus
Current Ratio
Expanded Accounting Equation
19. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Expense Recognition Principle
Source Documents
Permanent Accounts
Audit
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.
Current Ratio
Federal Reserve System
Corporations
Net Income
21. Individuals hired to review financial reports and information systems of organizations.
Conceptual Framework
Materiality Constraint
Acquisition
Auditors
22. Tool used to show the effects of transactions and events on individual accounts.
Net Loss
Shareholders
Classified Balance Sheet
T Account
23. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Ethics
NASDAQ
Credit
Debit
24. Individuals or organizations that owe money.
Posting
Debtors
Account Balance
Temporary Accounts
25. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Common Stock
Post Closing Trial Balance
Return on Assets
Securities and Exchange Commission
26. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Account
Annual Financial Statements
Sole Propietorship
Accounting Equation
27. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Double Entry Accounting
Net Income
Contra Account
Pro Forma Financial Statement
28. Monies (or sums of money) received from an investment; often in percent form.
Current Ratio
Return
Owner Investment
T Account
29. Length of time covered by financial statements; also called reporting period.
CD (Certificate of Deposit)
Accounting Period
Ledger
Accounting Equation
30. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Operating Cycle
Closing process
Current Liabilities
Limited Liability Corporation
31. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
SMART Goal
CD (Certificate of Deposit)
Discretionary Income
Secured Loan
32. Statements that show the effect of proposed transactions and events as if they had occurred.
Bailout
Audit
Reversing Entries
Pro Forma Financial Statement
33. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
IRA (Individual Retirement Account)
Ledger
Bookkeeping
Account
34. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.
Liabilities
Accrual Basis Accounting
Common Stock
Post Closing Trial Balance
35. Persons using accounting information who are not directly involved in running the organization.
Corporations
Profit Margin
Source Documents
External Users
36. The combining of two or more comapnies into one larger company.
Unearned Revenue
Interim Financial Statements
Contra Account
Mergers
37. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
Sole Proprietorship
Straight-line Depreciation Method
Common Stock
Natural Business Years
38. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Account
Source Documents
Book Value
Money Market Account
39. Assets put into the business by the owner.
Revenues
Ethical Dilemma
Owner Investment
Passive Income
40. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Long Term Investments
Accounting
Book Value
Net Loss
41. 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.
Accounting Equation
Sole Propietorship
Ponzi Scheme
Intangible assets
42. A legal entity that is seperate from its owners.
Financial Accounting
Fixed Expense
Corporations
International Accounting Standards Board
43. Owners of a corporation who usually receive dividends. Also called shareholders.
Owner - Capital
Stockholders
Common Stock
Limited Liability Corporation
44. Record containing all accounts (with amounts) for a business.
Profit Margin
Risk Tolerance
Ledger
Current Assets
45. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Internal users
General Journal
Post Closing Trial Balance
Net Loss
46. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Unadjusted Trial Balance
Bonds
Balance Column Account
Fixed Expense
47. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Cost Principle
Return
Pro Forma Financial Statement
Corporation
48. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Account Balance
Stock
Posting Reference Column
Return on Assets
49. 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.
Ledger
International Financial Reporting Standards
Permanent Accounts
Accrued Expenses
50. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Double Entry Accounting
Net Income
International Accounting Standards Board
Financial Accounting Standards Board