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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. 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.
Long Term Liabilities
IRA (Individual Retirement Account)
NYSE (New York Stock Exchange)
Balance Column Account
2. Ratio reflecting operating efficiency; defined as net income divided by average total assets for that period.
Debtors
Bailout
Return on Assets
Matching Principle
3. A corporation's basic ownership share.
Natural Business Years
Current Ratio
Closing Entries
Common Stock
4. Balance sheet that broadly groups assets - liabilities - and equity accounts.
Accrued Revenues
Time Period Assumptions
Shares
Unclassified Balance Sheets
5. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Money Market Account
Stock
Matching Principle (or Expense Recognition Principle)
Sole Proprietorship
6. All purpose journal for recording the debits and credits of transactions and events.
Balance Sheet
General Journal
Contra Account
Partnership
7. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - or years.
Statement of Cash Flows
Varaiable Expense
Time Period Assumptions
International Financial Reporting Standards
8. A financial statement that lists cash inflows and cash outflows during a period; arranged by operating - investing - and financing.
Statement of Cash Flows
Accounting Equation
Interim Financial Statements
Present Value
9. List of accounts and their balances at a point in time; total debit balances must equal total credit balances.
Trial balance
Sole Proprietorship
Plant Assets
Return
10. Journal entries that affect at least three accounts.
Compound Journal Entries
Preferred Stock
Internal users
Fixed Expense
11. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Closing process
Temporary Accounts
Owner Investment
Unsecured Loan
12. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Permanent Accounts
Debt Ratio
External Users
Fixed Expense
13. Uncertainty about expected return.
Accrued Expenses
Risk
Posting Reference Column
Revenue Recognition Principle
14. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Mergers
Risk Tolerance
Audit
Prepaid Expenses
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.
Reversing Entries
Owner Withdrawals
Adjusted Trial Balance
Closing process
16. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Discretionary Income
Work Sheet
Secured Loan
Accounting
17. Happenings that both affect an organization's financial position and can be reliably measured.
Events
Money Market Account
Ledger
Limited Liability Corporation
18. Account showing the owner's claim on company assets; equals owner investments plus net income (or less net loss) minus owner withdrawals since the company's inception. Also called Equity.
Recordkeeping
Double Entry Accounting
Internal transactions
Owner - Capital
19. Assets put into the business by the owner.
Owner Investment
Interim Financial Statements
Shareholders
Owner - Capital
20. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Classified Balance Sheet
Annual Financial Statements
Risk Tolerance
Going-concern Assumptions
21. The principle prescribing that revenue is recognized when earned.
Audit
Straight-line Depreciation Method
Revenue Recognition Principle
Net Loss
22. Financial statements covering periods of less than one year; usually based on one- - three- - or six-month periods.
Adjusting Entry
Assets
Accounting Cycle
Interim Financial Statements
23. The part of accounting that involves recording transactions and events either manually or electronically. Also called Recordkeeping.
Bookkeeping
General Journal
Ponzi Scheme
Portfolio Income
24. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Closing process
Time Period Assumptions
Owner Investment
Posting
25. Goals that are specific - measurable - attainable - realistic - and time bound.
Money Market Account
SMART Goal
Materiality Constraint
Plant Assets
26. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.
Ponzi Scheme
Straight-line Depreciation Method
Partnership Agreement
Cash Basis Accounting
27. Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses and increasing liabilities.
Accrued Expenses
Shares
NYSE (New York Stock Exchange)
Ponzi Scheme
28. List of accounts and balances prepared before accounting adjustments are recorded and posted.
Risk
Federal Reserve System
Accounting
Unadjusted Trial Balance
29. Assets pulled out of the business by the owner.
Discretionary Income
Owner Withdrawals
Current Assets
Ledger
30. 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).
Federal Reserve System
Assets
Income Summary
Present Value
31. Owner's claim on the assets of a business; equals the residual interest in an entity's assets after deducting liabilities. Also called net assets.
Equity
Securities and Exchange Commission
Cost Principle
Secured Loan
32. Financial instruments such as stocks - bonds - and mutual funds that are traded in a stock exchange.
Current Liabilities
Accrued Expenses
Securities
Partnership
33. The combining of two or more comapnies into one larger company.
Bookkeeping
Expanded Accounting Equation
Contra Account
Mergers
34. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.
Reversing Entries
Contra Account
Equity
Ledger
35. Resources that a company owns or controls that are expected to provide current and future benefits to the business.
Long Term Liabilities
Limited Liability Corporation
Matching Principle (or Expense Recognition Principle)
Assets
36. The part of accounting that involves recording transactions and events either manually or electronically. Also called Bookkeeping.
Portfolio Income
Sarbanes-Oxley Act (SOX)
Recordkeeping
Liabilities
37. Tool used to show the effects of transactions and events on individual accounts.
Long Term Liabilities
Surplus
Trial balance
T Account
38. 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
Debit
NASDAQ
Risk
NYSE (New York Stock Exchange)
39. 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.
Matching Principle
Net Loss
Passive Income
Ponzi Scheme
40. Accounting system in which each transaction affects at least two accounts and has at least one debit and one credit.
Annual Financial Statements
Long Term Liabilities
Double Entry Accounting
Time Period Assumptions
41. Federal agency Congress has charged to set reporting rules for organizations that sell ownership shares to the public.
T Account
Unsecured Loan
Securities and Exchange Commission
Events
42. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity
Shares
Accounting Equation
Classified Balance Sheet
Cost Principle
43. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.
Fixed Expense
Shares
Adjusted Trial Balance
Adjusting Entry
44. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Adjusting Entry
Statement of Owner's Equity
Corporation
Monetary Unit Assumption
45. An expense that changes from period to perio - such as food or gasoline costs.
Audit
Recordkeeping
Varaiable Expense
Present Value
46. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Cost Principle
Partnership
Business Entity Assumption
Annual Financial Statements
47. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
SMART Goal
Net Income
Time Period Assumptions
Profit Margin
48. Monies (or sums of money) received from an investment; often in percent form.
Return
Events
Partnership
Current Ratio
49. Difference between total debits and total credits (including the beginning balance) for an account.
Sole Proprietorship
NYSE (New York Stock Exchange)
Compound Journal Entries
Account Balance
50. Recorded on the left side; an entry that increases asset and expense accounts - and decreases liability - revenue and most equity accounts. Abbreviated Dr.
Debit
Ponzi Scheme
Interim Financial Statements
Auditors