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. Ratio used to evaluate a company's ability to pay its short term obligations - calculated by dividing current assets by current liabilities.






2. 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.






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






4. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.






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






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






7. Assets put into the business by the owner.






8. Assets acquisition costs less its accumulated depreciation - depletion - or amortization. Also sometimes used synonymously as the carrying value of an account.






9. Tool used to show the effects of transactions and events on individual accounts.






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






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






12. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.






13. List of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.






14. Income that is available after all of the essential financial commitments have been paid.






15. 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.






16. 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).






17. Monies (or sums of money) received from an investment; often in percent form.






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






19. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.






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






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






22. Persons using accounting information who are directly involved in managing the organization.






23. Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP.






24. 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.






25. A corporation's basic ownership share.






26. Individuals or organizations that owe money.






27. The first time a company sells shares of its stock to the public.






28. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.






29. Excess of expenses over revenues for a period.






30. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






31. Expenses that remain the same regardless of the circumstances.






32. List of accounts and balances prepared before accounting adjustments are recorded and posted.






33. Owners of a corporation who usually receive dividends. Also called shareholders.






34. Tangible long lived assets used to produce or sell products and services; also called property - plant - and equipment or fixed assets.






35. A written framework to guide the development - preparation - and interpretation of financial accounting information.






36. The money left over when income exceeds expenditure.






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






38. The twelve month period that ends when a company's sales activities are at their lowest point.






39. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.






40. Statements that show the effect of proposed transactions and events as if they had occurred.






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






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






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






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






45. 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






46. 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.






47. Journal entries that affect at least three accounts.






48. Business owned by a single person.






49. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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