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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.
Managerial Accounting
Accounting Equation
SMART Goal
External Transactions
2. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Reversing Entries
Bookkeeping
Cost Principle
Current Assets
3. Length of time covered by financial statements; also called reporting period.
Matching Principle (or Expense Recognition Principle)
Journal
Assets
Accounting Period
4. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Long Term Investments
Unearned Revenue
Closing Entries
Federal Reserve System
5. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Compound Journal Entries
Annual Financial Statements
Conceptual Framework
Acquisition
6. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Posting
Expanded Accounting Equation
Accrual Basis Accounting
Reversing Entries
7. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Corporation
Unclassified Balance Sheets
Net Loss
Matching Principle
8. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Journal
Depreciation
Assets
Secured Loan
9. Financial statement that subtracts expenses from revenues to yield a net income or loss over a specified period of time; also includes any gains or losses.
Income Statement
Accounting
Accrual Basis Accounting
Double Entry Accounting
10. Report of changes in equity over a period; adjusted for increases and for decreases.
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11. 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.
Owner Investment
Equity
Liabilities
International Financial Reporting Standards
12. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Cost-benefit Constraint
Full Disclosure Principle
Accounting
Measurement Principle
13. Items paid for in advance of receiving their benefits. Classified as assets.
Profit Margin
Prepaid Expenses
Posting
Temporary Accounts
14. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Closing process
External Transactions
Ponzi Scheme
Plant Assets
15. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Expenses
Annual Financial Statements
NYSE (New York Stock Exchange)
Working Papers
16. A loan that is backed by collateral such as cars - houses - or other assets.
Time Period Assumptions
Accrued Expenses
Secured Loan
Federal Reserve System
17. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Secured Loan
Common Stock
Deficit
Operating Cycle
18. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Temporary Accounts
Federal Reserve System
Accounting Equation
Debt Ratio
19. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Classified Balance Sheet
Partnership Agreement
CD (Certificate of Deposit)
Accounting Period
20. An expense that changes from period to perio - such as food or gasoline costs.
Owner Withdrawals
Varaiable Expense
Current Ratio
Book Value
21. The value of a future cash steam discounted at the appropriate market interest rate.
Corporation
Mergers
Expense Recognition Principle
Present Value
22. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Financial Accounting Standards Board
Expanded Accounting Equation
Unearned Revenues
Sole Proprietorship
23. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Net Income
Common Stock
Shares
Pro Forma Financial Statement
24. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.
Return on Assets
Recordkeeping
Ethics
Business Entity Assumption
25. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Temporary Accounts
Preferred Stock
Net Income
Statement of Cash Flows
26. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Profit Margin
Permanent Accounts
Net Income
Revenue Recognition Principle
27. 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
Credit
Chart of Accounts
Intangible assets
28. 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.
Federal Reserve System
IPO
Varaiable Expense
Book Value
29. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Recordkeeping
SEC (Securites and Exchange Commision)
Limited Liability Corporation
Post Closing Trial Balance
30. Process of recording transactions in a journal.
Journalizing
Events
Conceptual Framework
T Account
31. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Operating Cycle
Net Loss
Reversing Entries
Fiscal Year
32. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Prepaid Expenses
Intangible assets
Unadjusted Trial Balance
Revenues
33. The money left over when income exceeds expenditure.
Surplus
Long Term Liabilities
Posting Reference Column
Interim Financial Statements
34. Excess of expenses over revenues for a period.
Partnership Agreement
SEC (Securites and Exchange Commision)
Matching Principle (or Expense Recognition Principle)
Net Loss
35. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Intangible assets
Revenues
Events
Cost Principle
36. Income from investments - including dividends - interest - or the sale of a property.
Annual Financial Statements
Portfolio Income
Audit
NASDAQ
37. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
T Account
Ethics
Pro Forma Financial Statement
Ledger
38. 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.
Corporations
Accrual Basis Accounting
Internal users
International Financial Reporting Standards
39. Expenses that remain the same regardless of the circumstances.
Fixed Expense
International Accounting Standards Board
IRA (Individual Retirement Account)
Matching Principle
40. Area of accounting aimed mainly at serving external users.
Straight-line Depreciation Method
Account
Financial Accounting
Managerial Accounting
41. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Prepaid Expenses
Unsecured Loan
Balance Column Account
Portfolio Income
42. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
NYSE (New York Stock Exchange)
Expenses
Working Papers
Revenues
43. 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.
Plant Assets
Owner - Capital
Working Papers
Long Term Liabilities
44. Individuals or organizations that owe money.
Expanded Accounting Equation
Temporary Accounts
Debtors
IPO
45. Happenings that both affect an organization's financial position and can be reliably measured.
Events
Common Stock
Temporary Accounts
Varaiable Expense
46. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
Net Income
Unearned Revenue
IRA (Individual Retirement Account)
Acquisition
47. A legal entity that is seperate from its owners.
SMART Goal
Owner - Capital
Corporations
Sole Propietorship
48. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Portfolio Income
Balance Sheet
Current Assets
Posting
49. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Ethics
Interim Financial Statements
Stock
Financial Accounting
50. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Accrual Basis Accounting
NYSE (New York Stock Exchange)
Unclassified Balance Sheets
Debit