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. Rules that specify acceptable accounting practices.
International Accounting Standards Board
Generally Accepted Accounting Principles
Recordkeeping
Unearned Revenues
2. Gross increase in equity from a company's business activities that earn income.
Current Ratio
Internal transactions
Accounting Equation
Revenues
3. Individuals or organizations that owe money.
IPO
Debtors
Accrued Revenues
Compound Journal Entries
4. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Acquisition
Posting Reference Column
Bookkeeping
Cash Basis Accounting
5. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Money Market Account
Accounting Period
Ethical Dilemma
Sarbanes-Oxley Act (SOX)
6. Persons using accounting information who are directly involved in managing the organization.
External Users
International Financial Reporting Standards
Internal users
Adjusting Entry
7. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Unsecured Loan
Return on Assets
NASDAQ
Unclassified Balance Sheets
8. Activities within an organization that can affect the accounting equation.
Internal transactions
Risk Tolerance
Plant Assets
Audit
9. Owners of a corporation who usually receive dividends. Also called shareholders.
Stockholders
Profit Margin
Double Entry Accounting
Current Liabilities
10. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Account Balance
Statement of Cash Flows
Limited Liability Corporation
International Accounting Standards Board
11. Statements that show the effect of proposed transactions and events as if they had occurred.
Pro Forma Financial Statement
Intangible assets
Full Disclosure Principle
Corporation
12. 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.
Cost-benefit Constraint
Owner - Capital
Recordkeeping
Classified Balance Sheet
13. 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.
Generally Accepted Accounting Principles
Prepaid Expenses
Unearned Revenues
Income Statement
14. 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
Long Term Investments
NASDAQ
Income Summary
Return on Assets
15. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
International Financial Reporting Standards
Classified Balance Sheet
Money Market Account
Time Period Assumptions
16. Area of accounting aimed mainly at serving external users.
Accounting Equation
Sarbanes-Oxley Act (SOX)
Common Stock
Financial Accounting
17. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Partnership Agreement
Recordkeeping
Ponzi Scheme
Return on Assets
18. Persons using accounting information who are not directly involved in running the organization.
Internal users
External Users
Financial Accounting Standards Board
Accounting Cycle
19. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
IRA (Individual Retirement Account)
Materiality Constraint
Shares
Matching Principle (or Expense Recognition Principle)
20. A tax deferred account that allows individuals to plan for their retirement.
IRA (Individual Retirement Account)
Account Balance
Stock
Acquisition
21. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Going-concern Assumptions
Double Entry Accounting
NYSE (New York Stock Exchange)
External Transactions
22. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Working Papers
International Financial Reporting Standards
Bonds
Temporary Accounts
23. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Chart of Accounts
Cost-benefit Constraint
Unearned Revenues
Operating Cycle
24. Exchanges of economic value between one entity and another entity.
Owner - Capital
External Transactions
Corporations
Corporation
25. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Statement of Cash Flows
Time Period Assumptions
Work Sheet
Matching Principle
26. The combining of two or more comapnies into one larger company.
SMART Goal
Net Loss
Mergers
Bonds
27. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Liabilities
Limited Liability Corporation
Balance Sheet
Accrued Revenues
28. Expenses that remain the same regardless of the circumstances.
Sole Proprietorship
Ledger
Fixed Expense
Internal transactions
29. Journal entries that affect at least three accounts.
External Users
Compound Journal Entries
Journal
Account
30. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Cash Basis Accounting
Net Loss
Current Liabilities
Shareholders
31. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
NASDAQ
Permanent Accounts
Straight-line Depreciation Method
Income Summary
32. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Debt Ratio
Ethics
NASDAQ
Depreciation
33. The twelve month period that ends when a company's sales activities are at their lowest point.
Going-concern Assumptions
Natural Business Years
Sarbanes-Oxley Act (SOX)
Interim Financial Statements
34. Assets pulled out of the business by the owner.
International Accounting Standards Board
Statement of Cash Flows
Owner Withdrawals
Sole Proprietorship
35. Independent group of full-time members responsible for setting accounting rules.
Working Papers
Auditors
Financial Accounting Standards Board
Materiality Constraint
36. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
Profit Margin
CD (Certificate of Deposit)
Annual Financial Statements
Posting Reference Column
37. A legal entity that is seperate from its owners.
Corporations
Ethical Dilemma
Securities and Exchange Commission
Expense Recognition Principle
38. Length of time covered by financial statements; also called reporting period.
General Journal
Accounting Period
SMART Goal
Unadjusted Trial Balance
39. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Internal transactions
Assets
Accounting Cycle
Debt Ratio
40. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Trial balance
Varaiable Expense
Intangible assets
Depreciation
41. Goals that are specific - measurable - attainable - realistic - and time bound.
Bonds
NYSE (New York Stock Exchange)
SMART Goal
Return on Assets
42. Create the Public Company Accounting Oversight Board - regulates analyst conflicts - imposes corporate governance requirements - enhances accounting and control disclosures - impacts insider transactions and executive loans - establishes new types of
Natural Business Years
Bonds
Sarbanes-Oxley Act (SOX)
Accrual Basis Accounting
43. Income from investments - including dividends - interest - or the sale of a property.
Depreciation
Revenues
Ponzi Scheme
Portfolio Income
44. The value of a future cash steam discounted at the appropriate market interest rate.
Present Value
Passive Income
Corporations
Unearned Revenue
45. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Account Balance
Journal
Unearned Revenues
Internal users
46. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Assets
Stock
Compound Journal Entries
Managerial Accounting
47. Business owned by two or more people.
Partnership
Classified Balance Sheet
Stock
Cash Basis Accounting
48. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Bailout
Posting Reference Column
SEC (Securites and Exchange Commision)
Conceptual Framework
49. Individuals hired to review financial reports and information systems of organizations.
Journalizing
Journal
Shareholders
Auditors
50. Record containing all accounts (with amounts) for a business.
Double Entry Accounting
SMART Goal
Long Term Investments
Ledger