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






2. 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.






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






4. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.






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






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






7. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.






8. List of accounts and balances prepared after period-end adjustments are recorded and posted.






9. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.






10. Creditors' claims on an organization's assets; involves a probable future payment of assets - products - or services that a company is obligated to make due to past transactions or events.






11. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.






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






13. 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






14. A business structure that offers membership instead of shares - and combines limited liability protections with the tax from of a partneship.






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






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






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 Expense Recognition Principle.






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






19. Principle that assumes transactions and events can be expressed in money units.






20. Obligations not due to be paid within one year or the operating cycle - whichever is longer.






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






22. Goals that are specific - measurable - attainable - realistic - and time bound.






23. 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.






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






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






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






27. The act one corporation acquiring another through the purchase of its shares - or by purchasing its assets.






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






29. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






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






31. 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.






32. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






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






34. 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






35. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.






36. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






37. An expense that changes from period to perio - such as food or gasoline costs.






38. Exchanges of economic value between one entity and another entity.






39. Excess of expenses over revenues for a period.






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






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






42. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.






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






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






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






46. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






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






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






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






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







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