SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.
Generally Accepted Accounting Principles
International Financial Reporting Standards
Permanent Accounts
Temporary Accounts
2. Gross increase in equity from a company's business activities that earn income.
Revenues
Liabilities
SMART Goal
Debtors
3. Exchanges of economic value between one entity and another entity.
External Transactions
Accrued Revenues
Secured Loan
Present Value
4. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.
Temporary Accounts
Business Entity Assumption
Partnership Agreement
Financial Accounting
5. Area of accounting aimed mainly at serving the decision-making needs of internal users.
Preferred Stock
Managerial Accounting
Securities
Reversing Entries
6. Balance sheet that presents assets and liabilities in relevant subgroups - including current and non-current classifications.
Posting
Fiscal Year
Expenses
Classified Balance Sheet
7. A financial shortage that occurs when liabilities exceed assets or when cash inflows are less than cash outflows.
Debit
Deficit
Time Period Assumptions
Conceptual Framework
8. 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.
Ponzi Scheme
Adjusting Entry
Fiscal Year
Federal Reserve System
9. Analysis and report of an organization's accounting system - its records - and its reports using various tests.
Surplus
Annual Financial Statements
Audit
Liabilities
10. Analyses and other informal reports prepared by accountants and managers when organizing information for formal reports and financial statements.
Working Papers
Corporations
External Transactions
Stock
11. Record within an accounting system in which increases and decreases are entered and stored in a specific asset - liability - equity - revenue - or expense.
Adjusted Trial Balance
Owner - Capital
Business Entity Assumption
Account
12. A tax deferred account that allows individuals to plan for their retirement.
Unsecured Loan
Internal users
IRA (Individual Retirement Account)
Assets
13. A legal entity that is seperate from its owners.
Corporations
Internal transactions
Surplus
Secured Loan
14. Information and measurement system that identifies - records - and communicates relevant information about a company's business activities.
Accounting
IRA (Individual Retirement Account)
Portfolio Income
Federal Reserve System
15. Sources of information in accounting entries that can be in either paper or electronic form. Also called business papers.
IRA (Individual Retirement Account)
Source Documents
Revenues
Accrued Revenues
16. 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
NYSE (New York Stock Exchange)
NASDAQ
Partnership
Long Term Investments
17. Obligations not due to be paid within one year or the operating cycle - whichever is longer.
Account
Statement of Owner's Equity
Long Term Liabilities
Assets
18. Business that is a separate legal entity under state or federal laws with owners called shareholders or stockholders.
Unsecured Loan
Corporation
Income Statement
Secured Loan
19. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Compound Journal Entries
Plant Assets
Bookkeeping
Full Disclosure Principle
20. Long term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
Journalizing
Statement of Owner's Equity
Accounting Equation
Long Term Investments
21. Ratio of a company's net income to its net sales. The percent of income in each dollar of revenue.
Operating Cycle
Financial Accounting
Unadjusted Trial Balance
Profit Margin
22. Journal entries that affect at least three accounts.
Matching Principle
Book Value
Accrued Revenues
Compound Journal Entries
23. Individuals or organizations that owe money.
Owner Withdrawals
Debtors
Limited Liability Corporation
Accrual Basis Accounting
24. 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).
Closing Entries
Business Entity Assumption
Credit
Owner - Capital
25. All purpose journal for recording the debits and credits of transactions and events.
Creditors
Current Assets
Straight-line Depreciation Method
General Journal
26. Owners of a corporation who usually receive dividends. Also called stockholders.
Internal users
Shareholders
Trial balance
Bailout
27. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.
Secured Loan
Equity
Work Sheet
Discretionary Income
28. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.
Varaiable Expense
Working Papers
Stock
Risk
29. Difference between total debits and total credits (including the beginning balance) for an account.
Net Income
Matching Principle (or Expense Recognition Principle)
Account Balance
Acquisition
30. Normal time between paying cash for merchandise or employee services and receiving cash from customers.
Owner Withdrawals
Operating Cycle
Closing process
Long Term Liabilities
31. 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.
Events
Liabilities
Sarbanes-Oxley Act (SOX)
Risk Tolerance
32. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.
International Accounting Standards Board
Owner - Capital
Managerial Accounting
Monetary Unit Assumption
33. A column in journals in which individual ledger account numbers are entered when entries are posted to those ledger accounts.
Posting Reference Column
Passive Income
Classified Balance Sheet
Accrued Revenues
34. Ratio of total liabilities to total assets; used to reflect risk associated with a company's debts.
Debit
Long Term Investments
Current Assets
Debt Ratio
35. 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
Preferred Stock
Working Papers
Expense Recognition Principle
Partnership
36. Principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Managerial Accounting
Cost Principle
Net Income
Going-concern Assumptions
37. Rules that specify acceptable accounting practices.
Generally Accepted Accounting Principles
Current Ratio
Federal Reserve System
Interim Financial Statements
38. A written framework to guide the development - preparation - and interpretation of financial accounting information.
Closing Entries
Internal users
Conceptual Framework
Source Documents
39. A meausre if an investor's ability to cope with fluctations in the value of their portfolio.
Natural Business Years
Liabilities
Risk Tolerance
Source Documents
40. Monies (or sums of money) received from an investment; often in percent form.
Return
Plant Assets
Accounting Equation
Expense Recognition Principle
41. Record of money deposited in a financeial instution for a state time perio at a fixe interest rate.
External Users
Stockholders
Assets
CD (Certificate of Deposit)
42. 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.
Portfolio Income
Federal Reserve System
Full Disclosure Principle
Money Market Account
43. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.
Mergers
Financial Accounting Standards Board
Shares
Materiality Constraint
44. Method that allocates an equal portion of the depreciable cost of plant asset (cost minus salvage) to each accounting period in its useful life.
Intangible assets
Credit
Straight-line Depreciation Method
NYSE (New York Stock Exchange)
45. Assumption that an organization's activities can be divided into specific time periods such as months - quarters - and years.
Time Period Assumptions
Deficit
Adjusting Entry
Account
46. Accounting information is based on cost with potential subsequent adjustments to fair value.
Time Period Assumptions
Measurement Principle
Compound Journal Entries
Fiscal Year
47. Area of accounting aimed mainly at serving external users.
External Users
Interim Financial Statements
Unearned Revenues
Financial Accounting
48. Process of transferring journal entry information to the ledger; computerized systems automate this process.
Posting
Recordkeeping
Matching Principle
Accrued Expenses
49. Code of conduct by which actions are judged as right or wrong - fair or unfair - honest or dishonest.
Ethics
Journal
Discretionary Income
Return
50. 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.
Prepaid Expenses
International Financial Reporting Standards
Account Balance
Secured Loan