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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. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
Unearned Revenue
Sole Proprietorship
Shares
Accrued Expenses
2. A loan that is backed by collateral such as cars - houses - or other assets.
Journalizing
Secured Loan
Expense Recognition Principle
Unclassified Balance Sheets
3. Principle that assumes transactions and events can be expressed in money units.
Unearned Revenue
Financial Accounting
Monetary Unit Assumption
Corporations
4. 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.
Temporary Accounts
Limited Liability Corporation
Matching Principle
Post Closing Trial Balance
5. 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
Monetary Unit Assumption
Sole Propietorship
Sarbanes-Oxley Act (SOX)
Double Entry Accounting
6. 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.
Federal Reserve System
Bonds
Sole Propietorship
Managerial Accounting
7. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Fixed Expense
Portfolio Income
Recordkeeping
Common Stock
8. Business owned by two or more people.
Accrued Revenues
Unclassified Balance Sheets
Creditors
Partnership
9. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
Portfolio Income
Secured Loan
Source Documents
Discretionary Income
10. Income from investments - including dividends - interest - or the sale of a property.
Surplus
Adjusting Entry
Bookkeeping
Portfolio Income
11. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Post Closing Trial Balance
Passive Income
NYSE (New York Stock Exchange)
Double Entry Accounting
12. 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.
Current Ratio
Common Stock
Accounting Cycle
Owner Investment
13. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
SMART Goal
Federal Reserve System
Statement of Cash Flows
Temporary Accounts
14. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
Owner - Capital
CD (Certificate of Deposit)
Matching Principle (or Expense Recognition Principle)
Owner Investment
15. List of accounts used by a company' includes and identification number for each account.
Permanent Accounts
Current Assets
Income Summary
Chart of Accounts
16. Process of recording transactions in a journal.
Profit Margin
Journalizing
Net Loss
Source Documents
17. 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.
Owner Withdrawals
NASDAQ
Expense Recognition Principle
Profit Margin
18. Items paid for in advance of receiving their benefits. Classified as assets.
SEC (Securites and Exchange Commision)
Journal
Prepaid Expenses
Long Term Liabilities
19. Length of time covered by financial statements; also called reporting period.
Accounting Period
Cost-benefit Constraint
Journalizing
Account
20. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.
Debtors
Common Stock
Financial Accounting
Balance Column Account
21. Individuals or organizations that owe money.
Statement of Cash Flows
Debtors
Balance Sheet
Matching Principle (or Expense Recognition Principle)
22. Journal entries that affect at least three accounts.
Compound Journal Entries
Accrued Expenses
Generally Accepted Accounting Principles
Return
23. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Securities and Exchange Commission
Common Stock
Accrued Revenues
Profit Margin
24. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Work Sheet
Plant Assets
Account
Statement of Owner's Equity
25. 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.
NYSE (New York Stock Exchange)
Adjusting Entry
Owner Investment
Financial Accounting Standards Board
26. The principle prescribing that revenue is recognized when earned.
Revenue Recognition Principle
Materiality Constraint
Owner Investment
Expenses
27. Difference between total debits and total credits (including the beginning balance) for an account.
Accrued Revenues
Net Income
Account Balance
Contra Account
28. Report of changes in equity over a period; adjusted for increases and for decreases.
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29. Record in which trans actions are entered before they are posted to ledger accounts; also called the book of original entry.
Journal
Risk Tolerance
Accounting Cycle
Balance Sheet
30. Area of accounting aimed mainly at serving the decision-making needs of internal users.
SMART Goal
Secured Loan
Trial balance
Managerial Accounting
31. The twelve month period that ends when a company's sales activities are at their lowest point.
Recordkeeping
Natural Business Years
Owner Withdrawals
Expense Recognition Principle
32. 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.
Partnership
Events
Net Income
Reversing Entries
33. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)
Passive Income
Return on Assets
Full Disclosure Principle
Expenses
34. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Fiscal Year
Full Disclosure Principle
Long Term Liabilities
Adjusted Trial Balance
35. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Pro Forma Financial Statement
Equity
Operating Cycle
Ethical Dilemma
36. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Assets
Surplus
Return
Posting Reference Column
37. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.
Balance Sheet
Permanent Accounts
Owner - Capital
Accrued Expenses
38. A corporation's basic ownership share.
Expense Recognition Principle
IPO
Internal users
Common Stock
39. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Revenue Recognition Principle
Matching Principle (or Expense Recognition Principle)
Partnership
Temporary Accounts
40. All purpose journal for recording the debits and credits of transactions and events.
General Journal
NASDAQ
Sole Propietorship
Double Entry Accounting
41. An expense that changes from period to perio - such as food or gasoline costs.
Varaiable Expense
NASDAQ
Stock
Net Income
42. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Shares
Owner - Capital
Varaiable Expense
Pro Forma Financial Statement
43. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Statement of Cash Flows
Profit Margin
Fixed Expense
Sole Proprietorship
44. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Trial balance
Ponzi Scheme
Statement of Owner's Equity
Deficit
45. 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.
Statement of Cash Flows
Recordkeeping
Discretionary Income
NYSE (New York Stock Exchange)
46. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.
Deficit
Cost-benefit Constraint
Owner Withdrawals
Current Liabilities
47. Exchanges of economic value between one entity and another entity.
Financial Accounting Standards Board
Adjusting Entry
External Transactions
Matching Principle
48. Goals that are specific - measurable - attainable - realistic - and time bound.
Going-concern Assumptions
Contra Account
SMART Goal
Source Documents
49. Happenings that both affect an organization's financial position and can be reliably measured.
Profit Margin
Sole Proprietorship
Revenues
Events
50. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Matching Principle
Deficit
SEC (Securites and Exchange Commision)
Depreciation