TheoryDSST Financial Account Practic Practice Test Video
Watch the DSST Financial Account Practic practice test video walkthrough, review the questions, download the free PDF and start an online mock exam.
DSST Financial Account Practic exam — full Q&A walkthrough
Every question read aloud with the answer explained. Play it on your commute, then test yourself.
Try DSST Financial Account Practic questions now
Q1Which of the following is classified as a current asset on the balance sheet?
Show answer
✓ Correct answer: Accounts receivable
Accounts receivable represents amounts owed to the company by customers and is expected to be collected within one year, making it a current asset.
Q2On the balance sheet, total assets must equal
Show answer
✓ Correct answer: Total liabilities plus stockholders' equity
The fundamental accounting equation states that Assets = Liabilities + Stockholders' Equity. This equation must always balance.
Q3Which financial statement shows a company's financial position at a specific point in time?
Show answer
✓ Correct answer: Balance sheet
The balance sheet presents a snapshot of assets, liabilities, and equity at a specific date, showing the company's financial position at that moment.
Q4Net income from the income statement flows directly into which other financial statement?
Show answer
✓ Correct answer: Statement of retained earnings
Net income from the income statement is added to beginning retained earnings on the statement of retained earnings (or statement of owner's equity) to calculate ending retained earnings.
Q5The current ratio is calculated as
Show answer
✓ Correct answer: Current assets divided by current liabilities
The current ratio is a liquidity measure calculated by dividing current assets by current liabilities. It indicates the company's ability to pay short-term obligations.
Q6Which of the following ratios is used to measure a company's liquidity?
Show answer
✓ Correct answer: Quick ratio
The quick ratio (acid-test ratio) measures a company's ability to meet short-term obligations using its most liquid assets, making it a liquidity ratio.
Full DSST Financial Account Practic bank + unlimited mocks
Try 30 questions free. Unlock the complete DSST Financial Account Practic question bank, every explanation, and unlimited timed mock exams. Practice on any device.
Unlock DSST Financial Account Practic →