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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. Items paid for in advance of receiving their benefits. Classified as assets.






2. Owners of a corporation who usually receive dividends. Also called stockholders.






3. Accounting information is based on cost with potential subsequent adjustments to fair value.






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






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






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






7. Outflows or using up of assets as part of operations of business to generate sales.






8. 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.






9. The combining of two or more comapnies into one larger company.






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






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






12. A contract (usually drawn up by a lawyer) that staes how the partnership will be organized.






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






14. Accounts used to record revenues - expenses - and withdrawals (dividends for a corporation). They are closed at the end of each period.






15. Prescribes that accounting for items that significantly impact a financial statement and any inferences from them adhere strictly to GAAP.






16. Excess of expenses over revenues for a period.






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






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






19. Accounting system that recognizes revenues when cash is received and records expenses when cash is paid.






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






21. 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.






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






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






24. Goals that are specific - measurable - attainable - realistic - and time bound.






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






26. Spreadsheets used to draft an unadjusted trial balance - adjusting entries - adjusted trial balance - and financial statements.






27. Analysis and report of an organization's accounting system - its records - and its reports using various tests.






28. Business owned by a single person.






29. Account with debit and credit columns for recording entries and another column for showing the balance of the account after each entry.






30. A written framework to guide the development - preparation - and interpretation of financial accounting information.






31. Journal entries that affect at least three accounts.






32. Equality involving a company's assets - liabilities - and equity; Assets = Liabilities + Equity






33. Recurring steps performed each accounting period - starting with analyzing transactions and continuing through the post closing trial balance (or reversing entries).






34. Financial statements covering one-year period; often based on a calendar year - but any consecutive 12-month (or 52 week) period is acceptable.






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






36. Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.






37. Persons using accounting information who are not directly involved in running the organization.






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






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






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






41. Individuals hired to review financial reports and information systems of organizations.






42. List of accounts and balances prepared after period-end adjustments are recorded and posted.






43. Unincorporated association of two or more persons to pursue a business for profit as co-owners.






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






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






46. Income that is available after all of the essential financial commitments have been paid.






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






48. Prescribes expenses to be reported in the same period as the revenues that were eared as a result of the expenses. Also called the Matching Principle.






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






50. 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.