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






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






3. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.






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






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






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






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






8. Expenses that remain the same regardless of the circumstances.






9. Uncertainty about expected return.






10. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






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






12. Persons using accounting information who are directly involved in managing the organization.






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






14. Owners of a corporation who usually receive dividends. Also called shareholders.






15. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.






16. Items paid for in advance of receiving their benefits. Classified as assets.






17. Excess of expenses over revenues for a period.






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






19. Rules that specify acceptable accounting practices.






20. 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.






21. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






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






23. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






24. An expense that changes from period to perio - such as food or gasoline costs.






25. Individuals or organizations entitled to receive payments






26. 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






27. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.






28. Outflows or using up of assets as part of operations of business to generate sales.






29. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






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






32. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






33. Business owned by two or more people.






34. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






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






36. A corporation's basic ownership share.






37. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






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






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






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






41. Process of transferring journal entry information to the ledger; computerized systems automate this process.






42. Area of accounting aimed mainly at serving the decision-making needs of internal users.






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






44. 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.






45. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






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






47. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






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






49. All purpose journal for recording the debits and credits of transactions and events.






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