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. Loaning or giving money to a business in orer to save it from bankruptcy.
Bailout
Stockholders
Financial Accounting
T Account
2. Monies (or sums of money) received from an investment; often in percent form.
Unadjusted Trial Balance
Account Balance
Return
Assets
3. 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.
Debt Ratio
Expense Recognition Principle
Accrued Revenues
Risk Tolerance
4. The money left over when income exceeds expenditure.
Expenses
Intangible assets
Generally Accepted Accounting Principles
Surplus
5. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Return on Assets
Work Sheet
Debit
Account Balance
6. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.
Expanded Accounting Equation
Plant Assets
Profit Margin
Going-concern Assumptions
7. Consecutive 12-month (or 52 week) period chosen as the organization's annual accounting period.
Equity
Fiscal Year
Expense Recognition Principle
Posting
8. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Shares
Limited Liability Corporation
Compound Journal Entries
Account
9. Individuals hired to review financial reports and information systems of organizations.
Accounting Period
Auditors
Pro Forma Financial Statement
Bookkeeping
10. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Double Entry Accounting
Conceptual Framework
Assets
Sole Propietorship
11. 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
12. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Time Period Assumptions
Ponzi Scheme
Generally Accepted Accounting Principles
Contra Account
13. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.
Classified Balance Sheet
SEC (Securites and Exchange Commision)
Matching Principle (or Expense Recognition Principle)
Risk
14. Statements that show the effect of proposed transactions and events as if they had occurred.
Deficit
Events
Pro Forma Financial Statement
Debit
15. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
Unsecured Loan
Securities and Exchange Commission
Temporary Accounts
Return
16. Liability created when customers pay in advance for products or services; earned when the products or services are later delivered.
IPO
Discretionary Income
Double Entry Accounting
Unearned Revenue
17. 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.
Revenue Recognition Principle
IPO
Income Statement
Unearned Revenues
18. 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.
Internal transactions
Long Term Liabilities
International Financial Reporting Standards
Unclassified Balance Sheets
19. The first time a company sells shares of its stock to the public.
IPO
Ethical Dilemma
Income Summary
Materiality Constraint
20. Amount earned after subtracting all expenses necessary for and matched with sales for a period.
Net Income
Current Liabilities
Sole Proprietorship
Surplus
21. 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)
Unsecured Loan
Expense Recognition Principle
Creditors
22. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Bonds
Preferred Stock
Materiality Constraint
SMART Goal
23. Record containing all accounts (with amounts) for a business.
Securities and Exchange Commission
Operating Cycle
Ledger
Present Value
24. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Posting Reference Column
Debt Ratio
Accounting Equation
Current Assets
25. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.
Internal users
Accrual Basis Accounting
General Journal
Bookkeeping
26. Rules that specify acceptable accounting practices.
Generally Accepted Accounting Principles
Debtors
Cash Basis Accounting
Bonds
27. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Long Term Investments
Long Term Liabilities
Federal Reserve System
Secured Loan
28. Excess of expenses over revenues for a period.
Common Stock
Owner - Capital
Financial Accounting Standards Board
Net Loss
29. Goals that are specific - measurable - attainable - realistic - and time bound.
Surplus
Return
SMART Goal
Measurement Principle
30. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Partnership Agreement
Current Liabilities
Financial Accounting Standards Board
Statement of Cash Flows
31. The principle prescribing that revenue is recognized when earned.
Bonds
Unclassified Balance Sheets
Revenue Recognition Principle
Pro Forma Financial Statement
32. 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).
Net Income
Expense Recognition Principle
Income Summary
Internal users
33. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Internal transactions
Statement of Cash Flows
Annual Financial Statements
Income Summary
34. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Financial Accounting
Matching Principle (or Expense Recognition Principle)
Unearned Revenues
CD (Certificate of Deposit)
35. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Return on Assets
Net Income
Risk Tolerance
Expanded Accounting Equation
36. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Audit
IRA (Individual Retirement Account)
Credit
Intangible assets
37. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Operating Cycle
Shareholders
Materiality Constraint
NYSE (New York Stock Exchange)
38. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Unclassified Balance Sheets
Internal users
Audit
Events
39. Assets pulled out of the business by the owner.
Owner Withdrawals
Stock
Creditors
Profit Margin
40. Obligations due to be paid or settled within one year or the company's operating cycle - whichever is longer.
Journalizing
Corporation
Current Liabilities
Unearned Revenue
41. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Going-concern Assumptions
Closing process
Long Term Liabilities
Time Period Assumptions
42. A tax deferred account that allows individuals to plan for their retirement.
Trial balance
Ethical Dilemma
IRA (Individual Retirement Account)
Accounting Cycle
43. Individuals or organizations entitled to receive payments
Prepaid Expenses
Creditors
Cost Principle
Depreciation
44. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Adjusting Entry
Deficit
Pro Forma Financial Statement
Operating Cycle
45. Gross increase in equity from a company's business activities that earn income.
IPO
Revenues
Debit
Assets
46. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.
Ponzi Scheme
Bailout
Sole Proprietorship
Post Closing Trial Balance
47. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Auditors
Financial Accounting
Going-concern Assumptions
Expanded Accounting Equation
48. A situation in which a person is faced with two convingin yet conflicting alternatives for the solution to a difficult problem.
Ethical Dilemma
Credit
Current Liabilities
Stock
49. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Compound Journal Entries
Cash Basis Accounting
Events
Revenue Recognition Principle
50. Process of recording transactions in a journal.
Partnership
Bonds
Journalizing
Return