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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. Happenings that both affect an organization's financial position and can be reliably measured.
Income Summary
Temporary Accounts
Events
IRA (Individual Retirement Account)
2. Items paid for in advance of receiving their benefits. Classified as assets.
Prepaid Expenses
Varaiable Expense
Financial Accounting Standards Board
Adjusted Trial Balance
3. Record containing all accounts (with amounts) for a business.
Ledger
Permanent Accounts
Owner Withdrawals
Audit
4. Income from investments - including dividends - interest - or the sale of a property.
Partnership
Fixed Expense
Common Stock
Portfolio Income
5. Excess of expenses over revenues for a period.
Expanded Accounting Equation
Net Loss
IRA (Individual Retirement Account)
Adjusted Trial Balance
6. A legal entity that is seperate from its owners.
Generally Accepted Accounting Principles
Conceptual Framework
Expanded Accounting Equation
Corporations
7. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Accounting Period
Limited Liability Corporation
Accounting Equation
Unearned Revenues
8. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.
Current Ratio
Debtors
Credit
Monetary Unit Assumption
9. Cash and other assets expected to be sold - collected - or used within one year or the company's operating cycle - whichever is longer.
Long Term Investments
Accrual Basis Accounting
SEC (Securites and Exchange Commision)
Current Assets
10. A tax deferred account that allows individuals to plan for their retirement.
Source Documents
SMART Goal
IRA (Individual Retirement Account)
Intangible assets
11. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Equity
Long Term Investments
Varaiable Expense
Adjusted Trial Balance
12. 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.
Work Sheet
Balance Sheet
Expense Recognition Principle
Long Term Liabilities
13. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.
Intangible assets
Unearned Revenue
Time Period Assumptions
Annual Financial Statements
14. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Common Stock
Balance Column Account
Income Summary
Ethics
15. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Matching Principle
Monetary Unit Assumption
Unearned Revenue
Intangible assets
16. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Materiality Constraint
Secured Loan
Plant Assets
Adjusting Entry
17. Exchanges of economic value between one entity and another entity.
Going-concern Assumptions
External Transactions
Permanent Accounts
Matching Principle
18. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Adjusted Trial Balance
Permanent Accounts
Account
Assets
19. 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.
Unadjusted Trial Balance
Income Statement
Conceptual Framework
External Transactions
20. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Partnership
Financial Accounting Standards Board
International Financial Reporting Standards
Ethics
21. Individuals or organizations entitled to receive payments
Expanded Accounting Equation
SEC (Securites and Exchange Commision)
Creditors
Depreciation
22. 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.
Full Disclosure Principle
Passive Income
NYSE (New York Stock Exchange)
Expense Recognition Principle
23. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Sole Propietorship
International Financial Reporting Standards
Securities
Fiscal Year
24. Area of accounting aimed mainly at serving external users.
Ledger
Varaiable Expense
Unsecured Loan
Financial Accounting
25. All purpose journal for recording the debits and credits of transactions and events.
General Journal
Chart of Accounts
Conceptual Framework
Work Sheet
26. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Return on Assets
Statement of Cash Flows
Equity
Classified Balance Sheet
27. Owners of a corporation who usually receive dividends. Also called stockholders.
Accrual Basis Accounting
Operating Cycle
Mergers
Shareholders
28. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Posting
Working Papers
Account Balance
Owner Withdrawals
29. Principle that assumes transactions and events can be expressed in money units.
Monetary Unit Assumption
Corporation
Liabilities
Creditors
30. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Permanent Accounts
Return
Conceptual Framework
Portfolio Income
31. An expense that changes from period to perio - such as food or gasoline costs.
Accrued Revenues
Varaiable Expense
Stockholders
Journal
32. Length of time covered by financial statements; also called reporting period.
Closing process
Statement of Cash Flows
Accounting Period
Accrued Revenues
33. Individuals hired to review financial reports and information systems of organizations.
Journalizing
Deficit
IPO
Auditors
34. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Preferred Stock
Deficit
Posting Reference Column
Adjusted Trial Balance
35. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Double Entry Accounting
Net Loss
Partnership
Time Period Assumptions
36. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Conceptual Framework
Acquisition
Working Papers
Generally Accepted Accounting Principles
37. Business owned by two or more people.
Partnership
Pro Forma Financial Statement
Current Ratio
Bookkeeping
38. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Stock
Events
Intangible assets
Limited Liability Corporation
39. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Internal users
Revenue Recognition Principle
Conceptual Framework
Balance Column Account
40. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Generally Accepted Accounting Principles
Operating Cycle
Shares
Return on Assets
41. 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).
Net Loss
Adjusting Entry
Closing Entries
Accounting Period
42. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Fiscal Year
Partnership
Shares
Current Assets
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.
Owner - Capital
Long Term Investments
Debtors
Conceptual Framework
44. Assets put into the business by the owner.
Ethics
Ledger
Sole Proprietorship
Owner Investment
45. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Income Summary
Balance Sheet
Liabilities
Fiscal Year
46. Owners of a corporation who usually receive dividends. Also called shareholders.
Sarbanes-Oxley Act (SOX)
Limited Liability Corporation
T Account
Stockholders
47. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
Accounting Period
Bookkeeping
Net Income
Double Entry Accounting
48. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Common Stock
IPO
Acquisition
Debt Ratio
49. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Expense Recognition Principle.
Natural Business Years
Trial balance
Matching Principle
Portfolio Income
50. The money left over when income exceeds expenditure.
Partnership Agreement
Internal transactions
Surplus
Accounting