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. Accounts that reflect activities related to one or more future periods; balance sheet accounts whose balances are not closed. Also called real accounts.






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






3. Debt securities that are issued by a borrower to raise capital . Bonds guarantee payments of the original amount borrowe plus interest and/or repayable on a fixed rate when the bond matures.






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






5. Long Term assets (resources) used to produce or sell products or services. Usually lack physical form and have uncertain benefits.






6. Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.






7. Assets put into the business by the owner.






8. Recorded on the right side; an entry that decreases asset and expense accounts - and increases liability - revenue and most equity accounts. Abbreviated Cr.






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






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






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






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






13. 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.






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






15. Account linked with another account and having an opposite normal balance. Reported as a subtraction from the other account's normal balance.






16. Equity of a corporation divided into ownership units that usually give dividends. Also called Shares.






17. 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.






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






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






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






21. A tax deferred account that allows individuals to plan for their retirement.






22. Group that identifies preferred accounting practices and encourages global acceptance; issues the International Financial Reporting Standards.






23. Uncertainty about expected return.






24. Equity of a corporation divided into ownership units that usually give dividends. Also called Stock.






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






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






27. A federal agency that is responsible for regulating the securities industry an enforcing federal securites laws.






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






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






30. 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.






31. 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






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






33. 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.






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






35. 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.






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






37. Excess of expenses over revenues for a period.






38. The value of a future cash steam discounted at the appropriate market interest rate.






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






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






41. Earning received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book)






42. Individuals or organizations entitled to receive payments






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






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






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






46. 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).






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






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






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






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