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. Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expenses or revenue account.






2. 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.






3. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






4. Independent group of full-time members responsible for setting accounting rules.






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






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






7. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






8. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






9. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






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






11. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






12. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






13. Loaning or giving money to a business in orer to save it from bankruptcy.






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






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






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






17. Business owned by two or more people.






18. List of accounts and balances prepared before accounting adjustments are recorded and posted.






19. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






20. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.






21. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






23. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






24. Assets put into the business by the owner.






25. Excess of expenses over revenues for a period.






26. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






27. The money left over when income exceeds expenditure.






28. The NYSE was founded in 1792 and is the oldest and larvest securities market in the United States. it is located on Wall Street in New York.






29. The principle prescribing that revenue is recognized when earned.






30. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






31. An acronym for the National Association of Securities Dealers Automated Quotations. NASDAQ was founded in 1970 and is the largest electronic stock exchange in the United States. Unlike the NYSE - it has no physical location - existing entirely on cyb






32. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






33. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






34. Uncertainty about expected return.






35. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.






36. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






37. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






38. Business owned by one person that is not organized as a corporation.






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






40. 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






41. A written framework to guide the development - preparation - and interpretation of financial accounting information.






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






43. A legal entity that is seperate from its owners.






44. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






45. Individuals or organizations that owe money.






46. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






47. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






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






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






50. Unincorporated association of two or more persons to pursue a business for profit as co-owners.