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






2. Record containing all accounts (with amounts) for a business.






3. Exchanges of economic value between one entity and another entity.






4. 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.






5. 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.






6. Journal entries that affect at least three accounts.






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






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






9. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






10. The first time a company sells shares of its stock to the public.






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






12. Business owned by a single person.






13. 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.






14. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






15. Statements that show the effect of proposed transactions and events as if they had occurred.






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






17. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






18. Individuals or organizations entitled to receive payments






19. The twelve month period that ends when a company's sales activities are at their lowest point.






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






21. Assets pulled out of the business by the owner.






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






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






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






25. 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.






26. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






27. The combining of two or more comapnies into one larger company.






28. Income from investments - including dividends - interest - or the sale of a property.






29. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






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






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






33. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






34. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






35. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






36. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






37. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






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






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






40. Area of accounting aimed mainly at serving external users.






41. Business owned by two or more people.






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






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






44. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






45. 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.






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






47. Happenings that both affect an organization's financial position and can be reliably measured.






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






49. Report of changes in equity over a period; adjusted for increases and for decreases.

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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