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. The notion that only information with benefits of disclosure greater than the costs of disclosure need to be disclosed.






2. The principle prescribing that revenue is recognized when earned.






3. Excess of expenses over revenues for a period.






4. Individuals or organizations that owe money.






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






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






7. 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.






8. Principle that requires a business to be accounted for separately from its owner(s) and from any other entity.






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






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






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






12. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






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






14. Record containing all accounts (with amounts) for a business.






15. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.






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






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






18. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






19. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






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






21. Necessary end of period steps to prepare the accounts for recording the transactions of the next period.






22. Accounting information is based on cost with potential subsequent adjustments to fair value.






23. Happenings that both affect an organization's financial position and can be reliably measured.






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






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






26. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.






27. Owners of a corporation who usually receive dividends. Also called stockholders.






28. Resources that a company owns or controls that are expected to provide current and future benefits to the business.






29. Financial statement that lists types and dollar amounts of assets - liabilities - and equity at a specific date.






30. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.






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






32. Entries recorded at the end of each accounting period to transfer end of period balances in revenue - gain - expense - loss - and withdrawal (dividend for a corporation) accounts to the capital account (to retain earnings for a corporation).






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






34. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.






35. 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.






36. 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.






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






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






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






40. 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).






41. 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.






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






43. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.






44. Gross increase in equity from a company's business activities that earn income.






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






46. 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






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






48. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






49. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.






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