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. 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).
Secured Loan
Closing Entries
Net Income
Adjusted Trial Balance
2. Independent group of full-time members responsible for setting accounting rules.
Unearned Revenue
Temporary Accounts
Financial Accounting Standards Board
Depreciation
3. 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.
Matching Principle
Account
Interim Financial Statements
Fixed Expense
4. List of accounts used by a company' includes and identification number for each account.
Common Stock
Chart of Accounts
Net Income
Trial balance
5. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Unearned Revenues
Temporary Accounts
Compound Journal Entries
Cost-benefit Constraint
6. Statements that show the effect of proposed transactions and events as if they had occurred.
Auditors
Conceptual Framework
Unclassified Balance Sheets
Pro Forma Financial Statement
7. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Securities
Permanent Accounts
Profit Margin
Limited Liability Corporation
8. 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.
Generally Accepted Accounting Principles
Varaiable Expense
Common Stock
T Account
9. Unincorporated association of two or more persons to pursue a business for profit as co-owners.
Chart of Accounts
Generally Accepted Accounting Principles
Partnership
Passive Income
10. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Compound Journal Entries
Managerial Accounting
Accrued Expenses
Deficit
11. The money left over when income exceeds expenditure.
Surplus
Journalizing
Recordkeeping
Return
12. 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.
NYSE (New York Stock Exchange)
Materiality Constraint
Ethics
Balance Sheet
13. Persons using accounting information who are not directly involved in running the organization.
Book Value
Fiscal Year
External Users
Work Sheet
14. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Common Stock
External Transactions
Full Disclosure Principle
Cost Principle
15. 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.
Adjusting Entry
Current Ratio
Natural Business Years
Stockholders
16. Individuals hired to review financial reports and information systems of organizations.
Passive Income
Auditors
Common Stock
External Users
17. Gross increase in equity from a company's business activities that earn income.
Revenues
Fiscal Year
Return
CD (Certificate of Deposit)
18. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.
Income Summary
International Financial Reporting Standards
Equity
Common Stock
19. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Going-concern Assumptions
Shares
Varaiable Expense
Debtors
20. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Passive Income
Return on Assets
Classified Balance Sheet
NASDAQ
21. The twelve month period that ends when a company's sales activities are at their lowest point.
Debt Ratio
Depreciation
Natural Business Years
Full Disclosure Principle
22. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Matching Principle (or Expense Recognition Principle)
Time Period Assumptions
Cash Basis Accounting
Going-concern Assumptions
23. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Statement of Cash Flows
Account Balance
Stock
Preferred Stock
24. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Plant Assets
Journalizing
Accounting Equation
Ethics
25. Journal entries that affect at least three accounts.
Managerial Accounting
Financial Accounting
Credit
Compound Journal Entries
26. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Materiality Constraint
Current Assets
Common Stock
Cost Principle
27. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Income Summary
Operating Cycle
Shares
Interim Financial Statements
28. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Expense Recognition Principle
Owner Investment
Measurement Principle
Statement of Cash Flows
29. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Going-concern Assumptions
Current Liabilities
Accrual Basis Accounting
Chart of Accounts
30. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.
Measurement Principle
Internal transactions
Balance Column Account
Federal Reserve System
31. The combining of two or more comapnies into one larger company.
Closing Entries
Mergers
Revenue Recognition Principle
Unsecured Loan
32. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Full Disclosure Principle
Interim Financial Statements
Partnership
Fiscal Year
33. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Temporary Accounts
Going-concern Assumptions
Fiscal Year
Equity
34. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Securities
Corporation
Financial Accounting
Risk Tolerance
35. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Interim Financial Statements
Stock
Sole Propietorship
Double Entry Accounting
36. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Partnership Agreement
Journalizing
Permanent Accounts
Debit
37. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
CD (Certificate of Deposit)
Accounting
Passive Income
Money Market Account
38. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Classified Balance Sheet
Prepaid Expenses
Expense Recognition Principle
Cost-benefit Constraint
39. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).
NASDAQ
Accounting Cycle
Pro Forma Financial Statement
Generally Accepted Accounting Principles
40. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Owner Investment
Unclassified Balance Sheets
Contra Account
Varaiable Expense
41. Goals that are specific - measurable - attainable - realistic - and time bound.
NASDAQ
SMART Goal
Unclassified Balance Sheets
Accounting
42. Revenues earned in a period that both unrecorded and not yet received in cash (or other assets; adjusting entries for recording accrued revenues involve increasing assets and increasing revenues.
Revenue Recognition Principle
Auditors
Accrued Revenues
Profit Margin
43. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Statement of Owner's Equity
Reversing Entries
Long Term Investments
Intangible assets
44. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Current Ratio
CD (Certificate of Deposit)
Managerial Accounting
Corporation
45. 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.
Debit
Reversing Entries
Net Loss
Revenues
46. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Corporation
Financial Accounting Standards Board
Acquisition
Return on Assets
47. Outflows or using up of assets as part of operations of business to generate sales.
Financial Accounting
Risk Tolerance
Conceptual Framework
Expenses
48. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Plant Assets
Unsecured Loan
Varaiable Expense
Adjusted Trial Balance
49. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Limited Liability Corporation
Expense Recognition Principle
Materiality Constraint
Unearned Revenue
50. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Long Term Liabilities
Business Entity Assumption
Revenues
Pro Forma Financial Statement