Test your basic knowledge |

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. Owners of a corporation who usually receive dividends. Also called stockholders.






2. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.






3. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






4. Business owned by a single person.






5. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.






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






7. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






9. 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.






10. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






11. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






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






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






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






15. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.






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






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






18. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






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






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






21. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






22. Loaning or giving money to a business in orer to save it from bankruptcy.






23. A loan that is not backed by collateral - but by the promise of the borrower to repay it.






24. An investment scam that uses the assets from new investors to make payments to older investors. Named after Charles Ponzi who used the technique in the early 1900s to defraud thousands of investors.






25. Amount earned after subtracting all expenses necessary for and matched with sales for a period.






26. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






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






28. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.






29. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






30. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






31. Persons using accounting information who are not directly involved in running the organization.






32. A legal entity that is seperate from its owners.






33. Individuals or organizations that owe money.






34. 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.






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






36. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.






37. 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.






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






39. Gross increase in equity from a company's business activities that earn income.






40. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






41. Process of recording transactions in a journal.






42. Assets pulled out of the business by the owner.






43. Income from investments - including dividends - interest - or the sale of a property.






44. 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.






45. Business owned by one person that is not organized as a corporation.






46. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.






47. Temporary account used only in the closing process to which the balances of revenue and expense accounts (including any gains or losses) are transferred. Its balance is transferred to the capital account (or retained earnings for a corporation).






48. 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


49. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.






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