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. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Return on Assets
Common Stock
Post Closing Trial Balance
Trial balance
2. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Long Term Investments
International Financial Reporting Standards
Fiscal Year
Debit
3. 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
Sarbanes-Oxley Act (SOX)
Income Statement
Work Sheet
4. 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.
Partnership
Adjusted Trial Balance
NYSE (New York Stock Exchange)
Account Balance
5. A loan that is backed by collateral such as cars - houses - or other assets.
Chart of Accounts
Secured Loan
T Account
Depreciation
6. Happenings that both affect an organization's financial position and can be reliably measured.
Events
Time Period Assumptions
Partnership Agreement
Financial Accounting
7. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Unsecured Loan
Bailout
Assets
Creditors
8. Income that is available after all of the essential financial commitments have been paid.
Events
Discretionary Income
Account
Ethics
9. 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.
Straight-line Depreciation Method
Credit
Reversing Entries
Limited Liability Corporation
10. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Ethics
International Financial Reporting Standards
Securities
Unsecured Loan
11. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.
Acquisition
SEC (Securites and Exchange Commision)
Limited Liability Corporation
Common Stock
12. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.
IRA (Individual Retirement Account)
Unadjusted Trial Balance
Depreciation
Internal users
13. Goals that are specific - measurable - attainable - realistic - and time bound.
Account Balance
Depreciation
SMART Goal
Chart of Accounts
14. Individuals or organizations entitled to receive payments
Unsecured Loan
Return
Monetary Unit Assumption
Creditors
15. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Going-concern Assumptions
Time Period Assumptions
Working Papers
Statement of Owner's Equity
16. An expense that changes from period to perio - such as food or gasoline costs.
Source Documents
Equity
Income Summary
Varaiable Expense
17. The first time a company sells shares of its stock to the public.
Internal transactions
Deficit
IPO
Federal Reserve System
18. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.
Debt Ratio
Full Disclosure Principle
Surplus
Closing process
19. The twelve month period that ends when a company's sales activities are at their lowest point.
Statement of Cash Flows
Intangible assets
Statement of Owner's Equity
Natural Business Years
20. 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
Sarbanes-Oxley Act (SOX)
Portfolio Income
Accrued Expenses
Statement of Cash Flows
21. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Unclassified Balance Sheets
Net Income
Cost Principle
IRA (Individual Retirement Account)
22. List of accounts and balances prepared after period-end adjustments are recorded and posted.
Owner Investment
Unadjusted Trial Balance
Adjusted Trial Balance
CD (Certificate of Deposit)
23. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Closing Entries
Unclassified Balance Sheets
Deficit
Limited Liability Corporation
24. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.
Balance Sheet
Secured Loan
Varaiable Expense
Going-concern Assumptions
25. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.
Ethical Dilemma
Preferred Stock
Limited Liability Corporation
Ethics
26. Rules that specify acceptable accounting practices.
Conceptual Framework
Annual Financial Statements
Accounting Equation
Generally Accepted Accounting Principles
27. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Accrual Basis Accounting
Plant Assets
Interim Financial Statements
CD (Certificate of Deposit)
28. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Current Ratio
Audit
Classified Balance Sheet
Double Entry Accounting
29. Accounting standards set by the IASB which aim to develop a single set of global standards - to promote those standards - and converge national and international standards globally.
Expenses
Portfolio Income
Mergers
International Financial Reporting Standards
30. Gross increase in equity from a company's business activities that earn income.
Income Statement
Revenues
Unearned Revenue
Interim Financial Statements
31. A type of savings account that offers higher interest rates - with higher minimum deposit levels than a regular savings account.
Money Market Account
Creditors
Temporary Accounts
Classified Balance Sheet
32. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Unearned Revenue
Permanent Accounts
Ethical Dilemma
Accounting Equation
33. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Unsecured Loan
Posting Reference Column
Time Period Assumptions
Adjusted Trial Balance
34. Income from investments - including dividends - interest - or the sale of a property.
Journalizing
Unadjusted Trial Balance
Source Documents
Portfolio Income
35. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.
Debit
Securities
Bonds
Ethics
36. All purpose journal for recording the debits and credits of transactions and events.
General Journal
Matching Principle (or Expense Recognition Principle)
Unsecured Loan
Partnership
37. Individuals hired to review financial reports and information systems of organizations.
Sole Proprietorship
Bonds
Profit Margin
Auditors
38. Process of recording transactions in a journal.
Book Value
Monetary Unit Assumption
Journalizing
Profit Margin
39. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Corporations
Current Ratio
Account
Bonds
40. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Accrual Basis Accounting
Adjusting Entry
Working Papers
Sole Proprietorship
41. Exchanges of economic value between one entity and another entity.
Cost Principle
External Transactions
Securities and Exchange Commission
Pro Forma Financial Statement
42. Persons using accounting information who are not directly involved in running the organization.
Return
Statement of Owner's Equity
External Users
Preferred Stock
43. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Secured Loan
International Financial Reporting Standards
Conceptual Framework
Credit
44. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.
Fixed Expense
Time Period Assumptions
Book Value
Intangible assets
45. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Contra Account
General Journal
Corporation
Long Term Liabilities
46. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Accounting
Balance Column Account
Liabilities
Revenue Recognition Principle
47. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Fiscal Year
Time Period Assumptions
Return
CD (Certificate of Deposit)
48. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Annual Financial Statements
Expenses
Full Disclosure Principle
Varaiable Expense
49. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Accounting Cycle
Matching Principle
Credit
Operating Cycle
50. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Journalizing
Natural Business Years
Unsecured Loan
Corporation