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 money left over when income exceeds expenditure.






2. A loan that is backed by collateral such as cars - houses - or other assets.






3. Individuals or organizations entitled to receive payments






4. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.






5. Business owned by two or more people.






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






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






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






9. 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).






10. Independent group of full-time members responsible for setting accounting rules.






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






12. A security representing partial ownership of the company. It gives the holer priority to dividends over common stock investors. Capital stock that provides a specific dividend - which is paid before any dividends are pai to common stock holders - an






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






14. Expense created by allocating the cost of plant and equipment to periods in which they are used. Represents the expense of using the asset.






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






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






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






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






19. 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.






20. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.






21. The central bank of the United States - with 12 Federal Reserve branch banks located in major cities throughout the nation. It helps to regulate the US monetary and banking system.






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






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






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






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






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






27. Length of time covered by financial statements; also called reporting period.






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






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






30. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.






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






32. Assets = Liabilities + Equity; Equity equals [Owner capital - owner withdrawal + revenue - expenses] for a non-corporation; Equity equals [Contributed capital - retained earnings + revenue - expenses] for a corporation where dividends are subtracted






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






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






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






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






37. 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.






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






39. List of accounts used by a company' includes and identification number for each account.






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






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






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






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






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






45. Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.






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






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






48. 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


49. Business owned by a single person.






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