SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. 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.
Measurement Principle
Adjusting Entry
Risk
Statement of Owner's Equity
2. 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
Financial Accounting
Preferred Stock
Owner Withdrawals
External Transactions
3. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Accrued Expenses
Discretionary Income
Cash Basis Accounting
Expanded Accounting Equation
4. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Mergers
Ethics
Limited Liability Corporation
Debit
5. Individuals hired to review financial reports and information systems of organizations.
Conceptual Framework
Ledger
Posting
Auditors
6. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Sole Proprietorship
Matching Principle (or Expense Recognition Principle)
Long Term Investments
Intangible assets
7. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Profit Margin
Revenues
Cost-benefit Constraint
Accounting Equation
8. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Plant Assets
Matching Principle
Adjusting Entry
Accrued Expenses
9. Owners of a corporation who usually receive dividends. Also called stockholders.
Matching Principle
Shareholders
Owner Withdrawals
Income Summary
10. Independent group of full-time members responsible for setting accounting rules.
NASDAQ
Current Ratio
Financial Accounting Standards Board
Income Statement
11. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Journalizing
Revenues
Bookkeeping
Depreciation
12. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Balance Column Account
IRA (Individual Retirement Account)
Accrued Expenses
Journalizing
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.
Liabilities
Time Period Assumptions
Temporary Accounts
Cost Principle
14. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Corporations
Measurement Principle
Permanent Accounts
Conceptual Framework
15. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Ethical Dilemma
Shares
Discretionary Income
Liabilities
16. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Income Summary
Matching Principle
Surplus
Debt Ratio
17. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Interim Financial Statements
Cost Principle
Business Entity Assumption
Cash Basis Accounting
18. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Annual Financial Statements
Matching Principle
Fixed Expense
Credit
19. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Money Market Account
Permanent Accounts
Financial Accounting Standards Board
Accrual Basis Accounting
20. Difference between total debits and total credits (including the beginning balance) for an account.
Sole Proprietorship
Account Balance
Owner - Capital
Ethical Dilemma
21. The money left over when income exceeds expenditure.
Owner Investment
Surplus
Partnership
Posting Reference Column
22. 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.
NASDAQ
Bonds
Owner - Capital
Equity
23. 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
Time Period Assumptions
NASDAQ
Accrued Revenues
Closing process
24. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Expenses
Unearned Revenues
Statement of Cash Flows
Return on Assets
25. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Adjusted Trial Balance
External Users
Partnership Agreement
Net Loss
26. Business owned by a single person.
Present Value
Managerial Accounting
Revenues
Sole Propietorship
27. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Mergers
Operating Cycle
Accounting Period
Sole Propietorship
28. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Journal
Preferred Stock
Measurement Principle
Account
29. Length of time covered by financial statements; also called reporting period.
Return on Assets
Adjusted Trial Balance
Accounting Period
External Users
30. Expenses that remain the same regardless of the circumstances.
Fixed Expense
Accounting Equation
Depreciation
Monetary Unit Assumption
31. Assets put into the business by the owner.
Ponzi Scheme
Owner Investment
Net Income
Discretionary Income
32. Accounting information is based on cost with potential subsequent adjustments to fair value.
Equity
Posting
Measurement Principle
Events
33. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Posting Reference Column
SEC (Securites and Exchange Commision)
Sole Proprietorship
Ethical Dilemma
34. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Adjusting Entry
Interim Financial Statements
Debit
Limited Liability Corporation
35. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
Accounting Cycle
Ethical Dilemma
Reversing Entries
Monetary Unit Assumption
36. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Internal transactions
Current Ratio
Assets
Owner Withdrawals
37. 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
38. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Current Assets
Federal Reserve System
T Account
Stock
39. 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.
Adjusted Trial Balance
Unclassified Balance Sheets
Reversing Entries
Financial Accounting
40. A corporation's basic ownership share.
Common Stock
Partnership
External Users
Sarbanes-Oxley Act (SOX)
41. Happenings that both affect an organization's financial position and can be reliably measured.
Common Stock
Full Disclosure Principle
Events
Work Sheet
42. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Matching Principle
Fixed Expense
Assets
Money Market Account
43. 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.
IPO
Common Stock
Intangible assets
Accounting Cycle
44. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Internal transactions
Cost-benefit Constraint
Recordkeeping
Depreciation
45. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.
Current Assets
Expanded Accounting Equation
Ledger
Book Value
46. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
T Account
Acquisition
Time Period Assumptions
Profit Margin
47. Area of accounting aimed mainly at serving external users.
Long Term Liabilities
Financial Accounting
Passive Income
Current Assets
48. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
Current Liabilities
Unclassified Balance Sheets
Return on Assets
International Accounting Standards Board
49. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
Temporary Accounts
Depreciation
Sole Proprietorship
Reversing Entries
50. Items paid for in advance of receiving their benefits. Classified as assets.
Source Documents
Limited Liability Corporation
Contra Account
Prepaid Expenses